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GIS and Strategy – an Introduction

GIS and Strategy – an Introduction. Johannes Moenius. A Little Personal Story …. Client of mine (around 1990): Construction company specialized in road construction, 40 employees Saturday mornings: for bids: drove or flew to locations Once a month, spend one day asking himself:

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GIS and Strategy – an Introduction

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  1. GIS and Strategy – an Introduction Johannes Moenius

  2. A Little Personal Story … Client of mine (around 1990): • Construction company specialized in road construction, 40 employees • Saturday mornings: for bids: drove or flew to locations • Once a month, spend one day asking himself: • Where do I want to be one / five years from now? • Did I reach what I wanted one year / five years ago? • What do I have to change in order to get there?

  3. Please Write Down: • Where do I want my company to be one year from now? • Where do I want it to be five years from now? • What do I have to change to reach those goals?

  4. Now Please Ask Yourself: • Would you like to know where your current and potential customers are located? • What else would you like to know about your customers? • Would you like to know where your competitors are located? • What else would you like to know about your competitors?

  5. Goals and Strategy • Competitive Advantage • Above Average Returns • Strategy • Small Business Strategy?

  6. Decide: Which Markets to Serve and How to Serve Them • Two Basic Strategies: • Cost Leader • Differentiation • Not only for Products, also for Services, e.g.: • Cheap delivery • Fast / safe / reliable delivery

  7. Which Strategy? • Depends on Your Environment: • Current Competitors • Threat of Entry? • Indirectly Competing Products • Buyer Concentration / Power • Supplier Concentration / Power

  8. Where Are Your Current Competitors? • Example: location of competitors in some industry. Have map

  9. Are there any Underserved Markets? • Again, example of new location for, e.g. coffee-shops or something like this

  10. Where Are my Buyers? • Area profiling example

  11. How GIS Supports You • Geo-coding • Visualization • Statistical Methods, e.g.: • Neighborhood-Analysis • Gravity Model

  12. Use Your Own Data First! • Customer Records with Addresses • Other Characteristics: Type of Product Purchased, Total Amount Spent … • Driving Times (with daily profiles  Isochrones)

  13. Other Data Available • Jim, your input please 

  14. What Kind of Answers? • Do all my customers buy the same stuff or does that vary by location? • Are there any areas that I am not serving the right way? • How far can I reach with my products? How far can my competitors likely reach with theirs? • Am I offering the right product to the right market segment?

  15. Some Examples • Location Analysis • Product Adaptation • Serving Strategy (logistics strategy)

  16. Conclusion • Strategy essential for small businesses • GIS can support strategic decision making • Data and Technology for this is readily available: own customer data, buyable data, open-source software, high-end programs, mapping web-services

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