5 takeaways in 5 paragraphs

assignment.docx

Home >Information Systems homework help >5 takeaways in 5 paragraphs

Using GIS in Business

Week #2 Learning Journal

Write 5 “takeaways” from the files below. This is intended to be a reflective process, so each of your five takeaways should be explained in its own paragraph, using full sentences. If something is interesting or useful to you, try to explain why.

Spelling, capitalization, and grammar count! Also, all posts should be courteous and professional. No Plagiarism, and please simplifying your language

Each takeaway should be in 1 paragraph. Each paragraph should be around 4 lines.

Takeaway #1: find something interesting in this article below and explain why:

Takeaway #2: find something interesting in this article below and explain why:

Takeaway #3: find something interesting in this video in the link below and explain why:

http://www.gapminder.org/videos/200-years-that-changed-the-world-bbc/

Takeaway #4: find something interesting in this article below and explain why:

Localization: Not Just Location

October 2012

2Localization: Not Just Location October 2012

3 GIS for Localization: Not Just Location

4 Understand Local Markets and Develop Winning Strategies 4 Localization, Not Location

4 Customers Are Their Locations

5 Bring the Store to the Customer

6 The Circle of Life

7 Don’t Just Get Answers—Get Answers That Matter

8 Geography Matters—Market Correctly to the Correct

Market

9 Think Localization 9 Localization, Not Just Location,

Is No. 1 in Real Estate

10 Customers Are Their Locations

10 A “Lightbulb” Moment

11 Have Your Cake and Eat It Too

12 Becoming a More Self-Sufficient Marketplace

14 The Importance of Knowing Your Neighbor 15 How Do You Measure Store Visits?

16 Letting the Customer Take Charge

19 Esri’s 2010/2015 Updated Demographics Data 19 Income

19 Housing

20 Population

20 Diversity

Table of Contents

3GIS for Localization: Not Just LocationLocalization: Not Just Location October 2012

Localization is very important and provides the mechanisms to

improve both the effectiveness and efficiency of any operation.

Understanding varying nuances in different neighborhoods can

help businesses reach across their many units and systems and

find a united way of operating more efficiently. This process

should ultimately provide the correct amount of proper goods

and services in the right place at the right time. A huge task

in itself, redefining processes and systems can be more of a

challenge in a recession.

Tailoring product offerings to shoppers on a store-by-store basis

is more effective than a one-size-fits-all approach. Empowering

local store managers and real estate departments with decision-

making power leads to success. The key is holding the right tools

and knowledge framework for a successful business strategy.

But the time to shift is now—understanding buyers’ cautious

spending habits and pinpointing pockets of growth now mean

opportunities can be found; performance optimized; and,

ultimately, returns maximized.

This is evident across all sectors of business. In this e-book, we

bring you articles on how both businesses and communities

benefit from knowing their local markets better. Even in

the financial marketplace, understanding where risks and

policyholders are located leads to more accurate and fair pricing.

This saves everyone money.

GIS for Localization: Not Just Location

Localization: Not Just Location October 2012 4Understand Local Markets and Develop Winning Strategies

It’s 9:15—no, not the time we are thinking about our second cup

of coffee, but September 15, 2008, the day Lehman Brothers filed

the largest bankruptcy petition in U.S. history and the starting

point of the global financial crisis. For many of us, this is the day

the world changed forever. It turned much of our thinking about

how we run successful businesses on its head and brought about

new realities.

Two years after the onset of the greatest recession in modern

history, there is a new kind of normal. We have new consumer

behavior, revised expectations, innovative ways of doing

business, and different opportunities. GIS software is one of the

technologies that has helped organizations survive and thrive in

the face of all this change. By finding new strategies and a better

understanding of different drivers in local markets and the global

economy, the commercial industry is empowered with more

accurate information and is forging new directions.

Localization, Not Location

Today, consumers are holding the cards. It’s no longer a case

of “build it, and they will come.” Overinflated expectations of

store numbers, profit margins, and gross revenues during the

boom years have been replaced with conservative management,

controlled build-out, and revised business strategies. Every

aspect of driving success and maximizing return on investment

is location dependent. Localizing merchandise and correctly

configuring sites to maximize profits based on the profile of the

people in an area and their needs are significant challenges in

today’s economy. This is where GIS is helping. Localization is

the mechanism to balance market opportunity with supply and

demand. To do this, owners and managers need to be able to

apply a range of geographic analysis, models, and knowhow.

Accurately modeling potential requires better techniques as

chain operators seek growth and profitability from fewer, better-

located stores.

Customers Are Their Locations

Markets are not uniform, nor is their potential. Markets vary based

on what is already available; what they can support economically;

the types of people in the catchment; and the predominant flavor,

lifestyle, or culture of the area. Physical infrastructure like roads

and transit networks, together with transportation barriers, limits

access and defines whether intersections and destination points

are attractive. Cities can change many factors by modifying

Understand Local Markets and Develop Winning Strategies

Localization: Not Just Location October 2012 5Understand Local Markets and Develop Winning Strategies

the transportation networks and building new roads, but retail

developments are often organic. Retailers are not part of a master

plan; instead, they compete against each other for locations,

often pitting neighborhoods in opposition.

The traditional approach to defining markets based on a primary

trade area is out of date. Anyone analyzing actual customer data

struggles to find that elusive boundary where a customer goes to

one store instead of another.

It’s almost impossible to consistently predict sales using primary

trade areas, but business owners have become so used to them

that they are willing to put up with the failures. Or are they?

Where customers live or work is not necessarily where they

buy something. Purchasing behavior and shopper frequency

are driven by convenience. Organizations need to capture and

understand shopping habits, not just buying habits. It’s no

longer acceptable to use the distance from a store as a model

of changes in sales potential or increased competition. The

distributions of sales for real-world stores are too divergent and

diverse to continue with this historic technique. Today, overbuilt

means overexposed.

Bring the Store to the Customer

Given the varying demographic profile of customers, how does

one individualize the store, restaurant, or service center to

provide the one-to-one, personalized experience consumers now

demand? In a world where cheap is chic and coupons are cool,

how does a franchise succeed with fewer loyal, value-oriented

customers who are trading down and expecting much more?

Business owners need to understand not only whether a business

is in the right place but also whether there’s suitable business

for that market. This is where local owners and operators are

so important. Owners and operators are the front line in any

neighborhood; they care about the local area because they

live there, too. They know the neighborhood and customer

tastes and have daily exposure to habits and changing behavior.

Investing personal assets to create and maintain a business

Reviewing demographic reports by geography gives a much more accurate picture of the landscape for business owners and operators.

Localization: Not Just Location October 2012 6Understand Local Markets and Develop Winning Strategies

ensures that owners and operators of franchises think long and

hard about their every decision.

Smart organizations are using location analysis to empower local

operators to use profiles of the people in an area to localize

merchandise and correctly configure stores to maximize profits.

From beverage selections to localized price promotions and

location marketing, getting the product and service mix right

affects the bottom line every time. That means configuring the

format and size of the store to different market needs, providing

product choices, and sometimes even moving to a new location

to reduce competition and optimize revenues.

The Circle of Life

Today’s GIS technology embraces the modern, consumer-

oriented world that we all experience every day. iPhone apps and

web-based applications let potential businesses use GIS without

training and with minimal financial outlay. Market research;

customer analytics; and the creation of extensive demographic,

spending, and income reports let anyone in the franchise industry

understand surplus and demand in specific locations and create

forward-looking plans. A wide range of analytic techniques and

sophisticated models has been published by experts and is

available via a few mouse clicks. Ranking and scoring a market

or franchise territory are now easier than ever. Since this data is

continually updated, businesses stay current with market changes

and variations in economic factors.

The benefits don’t stop there. GIS is applicable throughout the

business life cycle. Initially, the technology helps in site selection

and market planning by helping owners and operators match

opportunity with budgets and expectations. As a retail network

matures, GIS helps optimize the growth strategy and maximize

returns from investment by creating more efficient systems

and optimal store placement. Using GIS, businesses not only

The traditional approach to defining markets based on a primary trade area is out of date. Anyone analyzing actual customer data struggles to find that elusive boundary where a customer goes to one store instead of another. GIS can help.

7Understand Local Markets and Develop Winning StrategiesLocalization: Not Just Location October 2012

understand where and how they should expand but can also

better manage the scale, format, and pace of expansion.

“Giving people the opportunity to own items they

need, from washers and dryers to nice, quality

furniture, helps them take care of their families.”

Charles A. McClure,

Chairman of McClure Partners

Using these tools, many franchises have outperformed other

industry sectors during the recent recession. Better insight into

changing income and age profiles, house valuation, disposable

incomes, lifestyles, spending patterns, and consumer habits

have helped companies tune their franchises to match consumer

demand. By doing so, many have enjoyed increased gross

margin, reduced inventory, and enhanced customer loyalty and

have balance sheets that are much healthier than many analysts

predicted.

Don’t Just Get Answers—Get Answers That Matter

Even in an economy that has slowed, GIS is helping business

owners and operators understand their long-term potential,

manage the bottom line, and align operations with opportunity.

Better business decisions are made asking the right questions.

With GIS, franchisees and franchisors get answers that matter.

The technology helps test hunches and investigate scenarios

with real-world data using insight gained from information and

experience. Whether it is used to look at the possibilities for one

location or develop growth strategies for an entire store network,

GIS can unlock the market potential of areas and reveal what the

expectations are for each. For more information, visit esri.com

/business.

As an enabler of marketing insight, GIS provides a detailed view into the potential performance of a business under different market conditions and economic factors.

http://www.esri.com/business

8Understand Local Markets and Develop Winning StrategiesLocalization: Not Just Location October 2012

Geography Matters—Market Correctly to the Correct Market

As anyone who has ever owned a business knows, being in

the right location is just the beginning of a successful business.

McClure Partners, a full-service real estate brokerage and

development company based in Dallas, Texas, has tapped

into the power of GIS to create a successful business by

understanding and helping improve local marketplaces. The

company relies on GIS to open franchises in areas thought to

be high-risk segments of the U.S. market. By understanding the

market opportunity and current performance and demographic

data, along with geographic aspects such as competition, streets,

and service areas, McClure Partners has successfully opened

a number of Chili’s restaurant franchises in locations others

deemed unprofitable.

GIS has also helped the company successfully invest in markets

for Aaron’s Inc., a company specializing in leasing furniture and

electronics. McClure Partners uses the same business techniques

and models to find the best places to open Aaron’s stores in

areas that have historically been written off because of low

income and unemployment. Bringing in new businesses like

these revitalizes communities and brings growth to economically

stagnant areas.

“Giving people the opportunity to own items they need, from

washers and dryers to nice, quality furniture, helps them take care

of their families,” says Charles A. “Mac” McClure, chairman of

McClure Partners. “They have a sense of pride that translates into

taking care of their homes, cleaning up streets, and making their

neighborhoods better places to live.”

(This article originally appeared in the Winter 2010/2011 issue of

BusinessGeoInfo.)

This targeted ZIP Code-level marketing analysis was developed by Pueblo County, Colorado, for online advertising to pinpoint certain demographic segments of New York City.

9Think LocalizationLocalization: Not Just Location October 2012

“Retail localization” is a phrase that is being bandied about more

and more in commercial business. What exactly does it mean?

If done correctly, retail localization means delivering the right

type and volume of products or services to customers within

a particular location by understanding the nuances of that

area. This recently happened in Esri’s hometown of Redlands,

California, where the chamber of commerce used Esri Business

Analyst Online (BAO) software and data to provide demographic

information about the surrounding communities that prompted

the Dussin Group to open an Old Spaghetti Factory restaurant in

a vacant building.

Markets vary by what is already available; what they can support

economically; and the predominant “flavor,” or lifestyle, of the

area. GIS technology can be used to better understand the

specific demographics and preferences in individual market areas

by visualizing that data in an easy-to-understand format: a map.

Instead of sifting through reams of tabular data, being able to

see where particular types of people are located makes business

decisions more accurate. GIS can be applied to retail localization

in four areas of commercial business: real estate, merchandising,

marketing, and the supply chain.

Localization, Not Just Location, Is No. 1 in Real Estate

Using GIS for retail localization positively affects commercial real

estate by optimizing the placement of stores for the best market

reach, helping evaluate sites, and improving market analysis. It

is important to have the right type of operation in the correct

Think Localization GIS Helps Retailers Better Understand Local Markets

Esri Business Analyst GIS software and data provide in-depth knowledge to understand even small nuances among different neighborhoods.

10Think LocalizationLocalization: Not Just Location October 2012

location. Understanding the market means knowing whether an

organization should enter, exit, or expand in it.

Real estate is a no-brainer for GIS; looking at geography

means looking at location. Viewing available sites, along with

other information such as income, households, and supply and

demand, gives the best overall view of the health of a particular

market. A great example of this is Edens & Avant, an owner

and developer of shopping centers on the East Coast. The

company, headquartered in Columbia, South Carolina, helps

clients such as Fresh Market, Whole Foods, Starbucks, and Target

develop innovative shopping centers. The company uses Esri

Business Analyst to look at existing population and demographic

information for individual areas by displaying all the information

clients need on a map. This makes decision making an easy-to-

understand, comprehensive process.

One project, a 61,725-square-foot shopping center development,

went forward only because Edens & Avant was able to determine

that a large residential base was already in place to support it.

Using GIS to analyze demographic information, the company

found that the population in targeted areas had grown by

50 percent over the past decade. As a result, the new center was

leased and opened on time. David Beitz, an executive with

Edens & Avant, explained to me that without the information to

support this decision and an appropriate way to communicate it,

the project wouldn’t have been as successful.

Customers Are Their Locations

Merchandising is another area where GIS can assist in localizing

business—and not just for retail operations. Banks need to

understand the loan products they are selling to customers.

Realtors need to match the needs of home shoppers to

the available housing inventory in an area. Insurers need to

understand what risks are in an area to create the best policies. If

a company does this correctly by understanding the profile of the

people in an area and what their needs are, demand can be met.

This is achieved by understanding the demographic makeup of an

area; you aren’t necessarily going to sell a house with a pool to

someone who doesn’t like to swim.

One major manufacturer does this very well by using Business

Analyst to place its products. Since the products are used for

competitive sports, company staff members look at demographic

information, the sales history of their stores, and other factors

including where schools with competitive sports teams are

located. This allows the company to match the correct product to

each storefront, all the way down to the colors that are needed

for the local teams.

A “Lightbulb” Moment

The third aspect of localization where GIS can help is in marketing.

Think about the coupons the checkout clerk gives you after you

purchase groceries or the offers you receive in the mail. These

11Think LocalizationLocalization: Not Just Location October 2012

are great examples of localizing the marketplace all the way down

to a personal level; they vary from town to town and consumer to

consumer.

Puget Sound Energy (PSE), Washington State’s oldest utility, put

GIS into practice with a marketing program called Rock the Bulb.

The utility targeted customers who regularly buy incandescent

lightbulbs with the objective of helping them choose compact

fluorescent lamp (CFL) bulbs instead. Using ArcGIS Desktop, PSE

honed in on the locations of hardware stores and big-box home

improvement stores and their proximity to existing customers.

If the right threshold was met, an event where customers were

asked to trade their old lightbulbs for new ones was staged.

Using this data in planning and budgeting, PSE was able to

estimate the number of participants that would attend the energy

efficiency events.

Have Your Cake and Eat It Too

Retail operations are also very important when we think about

localizing our business strategies. Sometimes we tend to forget

about the distribution and supply chain, which is the ability to

get products where they need to go at the right time. Having the

right products and services in the right location can ultimately

mean the difference between success, survival, and insolvency.

What’s so wonderful is that GIS can help even the most localized

business. Productos Ramo S.A., a snack food company in

Puget Sound Energy uses GIS to help reach the right customers with marketing programs.

12Think LocalizationLocalization: Not Just Location October 2012

Colombia, produces a well-known product called Chocoramo, a

square of cake coated in chocolate. You can’t travel to the area

without seeing Ramo’s freight bicycles on almost every street,

delivering Chocoramo and other snacks to small neighborhood

stores.

GIS is used to create optimum delivery routes for the company’s

700 freight bicycles and trucks. It has also been used to

implement a customer survey to find out exactly how many

cakes are needed to match demand by customers and where

they should be delivered. In addition, the technology is used

to produce sales maps to show company executives exactly

how many and where products are delivered. By using GIS to

implement a door-to-door survey and deliver the appropriate

number of cakes to each city, the company has increased the

clients in each of its sales and distribution zones by 10 percent.

In Bogotá, Colombia, alone, for example, Ramo has found 8,000

new customers. Instead of guessing or extrapolating how many

products might be needed in each zone, the company was able

to find the exact amount of product to meet customer demand.

You can’t get much more localized than that.

Becoming a More Self-Sufficient Marketplace

Doing business locally is becoming a new kind of normal. In

today’s economic climate, retailers can’t afford to guess. They

can’t expect to apply the same sales models to different

geographic markets. They need to understand the differences,

even subtle ones, between each marketplace if they are to thrive.

Air carrier delays and cancellations from the recent volcano

eruption in Iceland are translating into higher costs for shipped

products. If prices go higher, fewer people may be interested

in buying. If I am a shipper, I’d better ensure that I don’t ship

more goods than can be sold at my locations. If I am a local

businessperson, I will recognize this and look for a more local

product to fill the gap where shipped products have become too

expensive or even unavailable.

GIS helps even local businesses understand exactly how many products need to be delivered and to which street corners.

Localization: Not Just Location October 2012 13Think Localization

Speaking of goods becoming unavailable, in the case of the Gulf

of Mexico oil spill, we will see repercussions on local markets for

the rest of the year. Here in the United States, the shrimp comes

from Louisiana. Now that this year’s shrimp harvest has been

decimated, Americans may have to find some other type of fish

to eat. Smart retailers will recognize this vacuum and meet my

need with other products.

Events such as these make people stop and think about the fact

that we’ve become heavily reliant on many different products

brought to us through the globalized supply chain. Maybe it’s

time to think differently and act locally. We need to understand

not only whether a business is in the right place but also whether

it’s the right business to do at those locations.

For more information about using GIS in business, visit esri.com

/business.

(This article originally appeared in the Fall 2010 issue of BusinessGeoInfo.)

http://www.esri.com /business

Localization: Not Just Location October 2012 14The Importance of Knowing Your Neighbor

Simon Thompson, Esri’s director of commercial business industry

at Esri, believes retailers should use geographic information

system (GIS) data and software to better understand their

markets because, Dorothy, this isn’t Kansas anymore.

He explains, “On my last trip to Kansas, it wasn’t the wheat fields

or flatness that amazed me but the repetitive retail landscape. It

seemed that every town was a clone of the one I had just left—

the same restaurant chains, grocers, drugstores, and general

merchants.”

Was it an unholy alliance? Had real estate developers,

government, and retailers reached perfect agreement on what

every town needed and limited the choice to a small menu of

options? “The more I looked, the more I found exceptions,” says

Thompson. “The harder I tried to quantify the way towns were

similar to each other, the more I noticed the differences and

came away relieved that local flavors dominate.”

Doing business locally is the new kind of normal. After years of

building out networks almost without limit, the recent recession

changed everything. Retailers that bucked the trend did so

because they have what their customers want: stores in the right

markets, the right products for their catchment, and enough

sales opportunity to overcome

competition and changing

consumer tastes. Location and

geography-based analysis have

helped companies shift focus

from opening stores to improving

store revenue and creating

better promotions. Coupons

have become cool again. “And

we’re not just clipping them

from the local paper,” explains

Thompson. “We’re willing to get

them online because we benefit

from letting retailers integrate

our online habits with our in-store

purchases.”

The lifeblood of a store is return

customers. With detailed, local

knowledge, retailers can go

beyond segmentation and

customer profiles to individual

characteristics, localized

The Importance of Knowing Your Neighbor

The U.S. Green Building Council’s Green Building Information Gateway is an example of an application that allows users to quickly compare their neighborhood with other sites anywhere in the country. In this case, LEED ratings are being evaluated.

Localization: Not Just Location October 2012 15The Importance of Knowing Your Neighbor

assortment management, and product-level stratification. Loyalty

and CRM data come alive, so companies can spot trends and

respond, reduce markdown risks, and improve the balance sheet.

Thompson concludes, “Like Dorothy, I know there’s a journey that

we need to take to gain courage, a heart, or knowledge. Are we

ready for the challenges on the yellow brick road? I don’t know,

but GIS sure looks like a good weapon against the miseries of the

Wicked Witch of the Great Recession.”

Do others in the industry agree that having products and services

that more reflect the local region really help retailers succeed?

How Do You Measure Store Visits?

How often will a customer visit your store if it is 2 minutes away

from the customer’s home versus 10 minutes away? If there

are less affluent people living near the store and more affluent

people living further from the store, how much business will you

capture from each? This is a question posed by Jim Stone, the

founder and president of geoVue.

geoVue is a leading provider of market planning and site

selection solutions for operators. The company is located in

Woburn, Massachusetts, and has been around since 1994. Stone

explains, “The increased focus on localization has cast a new

light on a well-established concept in site analysis: the primary

trade area. A primary trade area is generally defined as the

physical boundary that represents some significant proportion of

customers who will frequent a store, usually between 60 and 80

percent. Many techniques have been devised to estimate the size

of a primary trade area for a proposed store including standard

rings, drive times, and probability-based measures using

advanced techniques such as spatial interaction models.”

“If the Wizard of Oz were written today, Dorothy

would probably have her own smartphone.”

Lori Schafer, Executive Adviser

for SAS Institute’s Global Retail Division

According to Stone, there are two major challenges presented by

the use of a single geographic boundary to define a store trade

area:

• What does the region outside the trade area look like, and

does it really represent the remaining sales beyond

60–80 percent?

• Does the probability of patronage change uniformly from the

store to the edge of the trade area for all stores?

After 15 years of analyzing actual customer data for retailers,

restaurants, and service companies, geoVue has found that it is

almost impossible to consistently predict sales for a store using

a single boundary as the measure of a primary trade area. As

the distance from a store increases, the distributions of sales for

real-world stores are too diverse given the varying quantity and

demographic profile of customers.

Localization: Not Just Location October 2012 16The Importance of Knowing Your Neighbor

This is where GIS technology and data are so important. Retailers

can use GIS to move into new areas with techniques such as

geographically weighted regression, geostatistical analysis,

and other models based on continuous measurement of data

across different distances from a store. Primary trade areas may

be useful for visualizing existing customer data, but accurately

modeling potential customers will require better techniques as

chain operators seek growth and profitability from fewer, better-

located stores.

Letting the Customer Take Charge

“If the Wizard of Oz were written today, Dorothy would probably

have her own smartphone,” says Lori Schafer, executive adviser

for SAS Institute’s Global Retail Division. Schafer currently serves

on the board of directors of the National Retail Federation (NRF)

as well as several public and private retailers and technology

companies.

“Based on Dorothy’s current location, she’d have a GPS-based

app showing her how to navigate the Yellow Brick Road back to

Kansas,” Schafer says. “Along the way, she and her friends could

use the smartphone to search for the nearest retailer who carried

a heart for the Tin Man, a brain for the Scarecrow, and courage

for the Lion. She’d also use the device to do comparative price

checks; research which retailers were offering incentives; read

reviews from others who purchased those same products; and,

via social media, ask opinions of her family back in Kansas. She

may even use foursquare to become the Mayor of Oz!”

Schafer goes on to explain that in today’s world, Dorothy

would be a typical tech-savvy consumer. Customers are now in

charge, and successful retailers must not only better understand

local customer preferences and differentiate their stores from

competition but also engage with customers on their own terms.

GIS allows retailers to understand the local market more accurately.

Localization: Not Just Location October 2012 17The Importance of Knowing Your Neighbor

Today, it’s all about bringing the store to the customer, not

expecting the customer to find a store.

Savvy retailers understand why it is critical to become more

local. They are focusing on understanding neighborhood

demographics and tying customer loyalty, purchase, and location

data together to tailor assortment, style, size, and even colors

to local customer demand. Responding to local customer needs

is an essential strategy for most retailers. It’s proven to not only

enhance customer satisfaction but also drive incremental sales

and margin.

Schafer points out some examples, such as Macy’s, a chain of mid-

to high-range department stores found across the United States,

whose core strategic priorities are “differentiating merchandise

assortments and tailoring them to local tastes.” The company’s

“My Macy’s” initiative is all about making its merchandise specific

to customers’ needs in every store, in every local market.

Or, consider Best Buy, an international retailer of consumer

electronics and entertainment software. This company provides

consumers with access to a store-specific web page for each of

its locations. Its mobile application includes a store locator and

will soon provide the ability to search for a particular item and,

based on a customer’s current geographic location, show in-stock

positions for nearby stores. Both Best Buy and Macy’s are testing

a mobile-based customer loyalty program that detects when the

customer is in the store, then presents relevant incentives based

on that customer’s specific profile and location.

Over the past several years, retailers have begun implementing

analytic software to help them tailor marketing to the local

consumer; optimize the price, quantity, and assortment mix

based on customers shopping that particular store; and improve

operational performance by location. Software applications such

as market-basket analysis; demand forecasting; and campaign,

assortment, size, price, and promotion optimization have become

mainstream in assisting retailers in tailoring merchandising and

marketing to the local consumer.

“To date, GIS has been used mainly by retailers’ real estate

departments for location planning,” states Schafer. “Yet GIS

should also be a key tool used by retailers’ merchandising,

marketing, and operations departments in tailoring assortments,

services, and incentives to local demand.”

“GIS should also be a key tool used by retailers’

merchandising, marketing, and operations

departments in tailoring assortments, services, and

incentives to local demand.”

Lori Schafer

GIS can easily be integrated into these analytic software solutions

to provide a more precise view of local market conditions.

Consider how much more insight a retailer could get by seeing

Localization: Not Just Location October 2012 18The Importance of Knowing Your Neighbor

a computerized map showing the precise location of all stores,

complete with a detailed view of competitors’ relative locations

as well as complementary retailers and other services that could

draw more traffic. Demographic, store performance, assortment,

pricing, and customer data associated with each location is only a

click away.

Retailers and retail solution providers need to fully embrace the

capabilities that GIS can provide. After all, most consumers are

already using GIS on their mobile devices to find what they want.

Very soon, consumers will be able to type the name of a product

into their smartphones and instantly see the list of local retailers

who have that item in stock, associated price and incentives, and

directions and drive time. With the rapid surge in GIS-enabled

mobility giving today’s customers all the information they need

in the palm of their hand, retailers need to not only understand

who and where their customers are but also how to optimize

their stores’ merchandise, services, and promotional offerings for

that customer. There is no better way to know your customers,

assess the marketplace, and improve your business than by

incorporating GIS and location data into your business analysis.

For more information, visit esri.com/retail.

(This article originally appeared in the Winter 2010/2011 issue of

BusinessGeoInfo.)

http://www.esri.com/retail

Localization: Not Just Location October 2012 19Esri’s 2010/2015 Updated Demographics Data

Retail customers continue to battle the lingering effects of the

recession—unemployment, stagnant household incomes, and

lower housing prices. “Christmas in July” sales, expanded

layaway options, and an earlier back-to-school season are

among the campaigns retailers are launching to entice reluctant

consumers back into their stores to shop. How can retailers

learn about the demographic data trends that will affect their

businesses? Esri’s 2010/2015 Updated Demographics data reveals

intriguing information about the demographic landscape in the

United States.

Esri’s 2010/2015 Updated Demographics data offers more

than 2,000 data variables, including current-year estimates and

2015 forecasts for 11 different U.S. geographies from national

to block group levels. This data can help identify areas of high

unemployment, adjustments in the housing market, rising

vacancy rates, changes in income and consumer spending,

and increased population diversity. Agencies, businesses, and

organizations can use the data to analyze trends, identify growth,

and reveal new market opportunities.

“The challenge of successfully weathering the current economy

underscores the importance of having access to accurate

information. Current data can track critical changes and preclude

the cost of being wrong,” says Lynn Wombold, Esri’s chief

demographer and manager of data development. “Esri pays

close attention to economic and social trends and how they

influence the needs of businesses, consumers, and citizens.”

Income

U.S. households are still feeling the pinch of the recession. The

median household income for 2010 is $54,442, down slightly

from $54,719 in 2009. In 98 percent of U.S. counties, median

household income has declined. Average household income

dropped even more, falling from $71,437 to $70,135.

Housing

The first quarter of 2010 saw foreclosures jump by 16 percent over

the comparable period in 2009. Short sales are still impacting the

market in some areas. Housing unit vacancies rose by 7.4 percent,

pushing the overall U.S. vacancy rate to nearly 12 percent.

Esri’s 2010/2015 Updated Demographics Data Recovery Slowed by Lackluster Income, Cautious Spending, Rising Unemployment, and Low Housing Prices

Localization: Not Just Location October 2012 20Esri’s 2010/2015 Updated Demographics Data

Population

The U.S. population continues to change and diversify. Population

growth and change slowed in most markets due to fewer births

and the inability to move. Ten states, including Florida and

Michigan, lost population from 2009 to 2010; more than half of all

U.S. counties also lost population.

Diversity

The most diverse states in 2010 are California, Hawaii, New

Mexico, Texas, and Nevada. At 50.5 million, Hispanics now

comprise 16.2 percent of the total U.S. population. From 2000

to 2010, this segment grew at an annual rate of 3.5 percent. The

Asian population rose and now stands at 14.1 million, comprising

4.5 percent of the U.S. population. This segment grew at an

annual rate of 3.2 percent from 2000 to 2010. Now numbering

Median household income declined in 98 percent of U.S. counties. Growth of the Hispanic population is the greatest in counties in Texas, California, and New Mexico.

Localization: Not Just Location October 2012 21Esri’s 2010/2015 Updated Demographics Data

9.3 million people and 3 percent of the U.S. total, the 2010

multiracial population also expanded and grew at an annual rate

of 3.1 percent from 2000 to 2010.

Esri’s 2010/2015 Updated Demographics data is available as

database variables and in Esri Business Analyst products (online,

on desktops and servers, and in an iPhone app); see esri.com/

businessanalyst.

For more information about Esri’s 2010/2015 Updated

Demographics data, visit esri.com/demographicdata or call

1-800-447-9778.

(This article originally appeared in the Fall 2010 issue of BusinessGeoInfo.)

http://www.esri.com/businessanalyst

http://www.esri.com/demographicdata

The information contained in this document is the exclusive property of Esri. This work is protected under United States copyright law and other international copyright treaties and conventions. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, or by any information storage or retrieval system, except as expressly permitted in writing by Esri. All requests should be sent to Attention: Contracts and Legal Services Manager, Esri, 380 New York Street, Redlands, CA 92373-8100, USA.

The information contained in this document is subject to change without notice.

US Government Restricted/Limited Rights Any software, documentation, and/or data delivered hereunder is subject to the terms of the License Agreement. The commercial license rights in the License Agreement strictly govern Licensee’s use, reproduction, or disclosure of the software, data, and documentation. In no event shall the US Government acquire greater than RESTRICTED/LIMITED RIGHTS. At a minimum, use, duplication, or disclosure by the US Government is subject to restrictions as set forth in FAR §52.227-14 Alternates I, II, and III (DEC 2007); FAR §52.227-19(b) (DEC 2007) and/or FAR §12.211/12.212 (Commercial Technical Data/Computer Software); and DFARS §252.227-7015 (DEC 2011) (Technical Data – Commercial Items) and/or DFARS §227.7202 (Commercial Computer Software and Commercial Computer Software Documentation), as applicable. Contractor/Manufacturer is Esri, 380 New York Street, Redlands, CA 92373-8100, USA.

Esri Trademarks and Service Marks: @esri.com, 3D Analyst, ACORN, Address Coder, ADF, AML, ArcAtlas, ArcCAD, ArcCatalog, ArcCOGO, ArcData, ArcDoc, ArcEdit, ArcEditor, ArcEurope, ArcExplorer, ArcExpress, ArcGIS, ArcGlobe, ArcGrid, ArcIMS, ARC/INFO, ArcInfo, ArcInfo Librarian, ArcLessons, ArcLocation, ArcLogistics, ArcMap, ArcNetwork, ArcNews, ArcObjects, ArcOpen, ArcPad, ArcPlot, ArcPress, ArcPy, ArcReader, ArcScan, ArcScene, ArcSchool, ArcScripts, ArcSDE, ArcSdl, ArcSketch, ArcStorm, ArcSurvey, ArcTIN, ArcToolbox, ArcTools, ArcUSA, ArcUser, ArcView, ArcVoyager, ArcWatch, ArcWeb, ArcWorld, ArcXML, Atlas GIS, AtlasWare, Avenue, BAO, Business Analyst, Business Analyst Online, BusinessMAP, CommunityInfo, Database Integrator, DBI Kit, EDN, Esri, Esri— Team GIS, Esri—The GIS Company, Esri—The GIS People, Esri—The GIS Software Leader, FormEdit, GeoCollector, Geographic Design System, Geography Matters, Geography Network, GIS by Esri, GIS Day, GIS for Everyone, GISData Server, JTX, MapIt, Maplex, MapObjects, MapStudio, ModelBuilder, MOLE, MPS—Atlas, PLTS, Rent-a-Tech, SDE, SML, Sourcebook·America, SpatiaLABS, Spatial Database Engine, StreetMap, Tapestry, the ARC/INFO logo, the ArcGIS logo, the ArcGIS Explorer logo, the ArcPad logo, the Esri globe logo, the Esri Press logo, the GIS Day logo, the MapIt logo, The Geographic Advantage, The Geographic Approach, The World’s Leading Desktop GIS, Water Writes, arcgis.com, esri.com, geographynetwork.com, gis. com, gisday.com, and Your Personal Geographic Information System are trademarks, service marks, or registered trademarks or service marks of Esri in the United States, the European Community, or certain other jurisdictions.

Other companies and products mentioned herein may be trademarks or registered trademarks of their respective trademark owners.

Printed in USA

Contact Esri

380 New York Street Redlands, California 92373-8100 usa

1 800 447 9778 t 909 793 2853 f 909 793 5953 [email protected] esri.com

Offices worldwide esri.com/locations

Esri inspires and enables people to positively impact their future through a deeper, geographic understanding of the changing world around them.

Governments, industry leaders, academics, and nongovernmental

organizations trust us to connect them with the analytic knowledge they

need to make the critical decisions that shape the planet. For more than

40 years, Esri has cultivated collaborative relationships with partners

who share our commitment to solving earth’s most pressing challenges

with geographic expertise and rational resolve. Today, we believe that

geography is at the heart of a more resilient and sustainable future.

Creating responsible products and solutions drives our passion for

improving quality of life everywhere.

G52756 ESRI10/12ek

GIS for Localization: Not Just Location
Understand Local Markets and Develop Winning Strategies

Localization, Not Location
Customers Are Their Locations
Bring the Store to the Customer
The Circle of Life
Don’t Just Get Answers—Get Answers That Matter
Geography Matters—Market Correctly to the Correct Market

Think Localization

Localization, Not Just Location, Is No. 1 in Real Estate
Customers Are Their Locations
A “Lightbulb” Moment
Have Your Cake and Eat It Too
Becoming a More Self-Sufficient Marketplace

The Importance of Knowing Your Neighbor

How Do You Measure Store Visits?
Letting the Customer Take Charge

Esri’s 2010/2015 Updated Demographics Data

Income
Housing
Population
Diversity

business-intelligen

ce-location-analytics.pdf

Answering the ‘Where’ in Your BI

How Are Maps Used? Let Us Count the Ways…

A Disconnect Between Perceived Value and Prioritization

Making Do Instead of Being Strategic

Users Are Behind in Their Awareness

Conclusion

About Esri

Click to navigate

Revealing the ‘Where’ of Business Intelligence using Location Analytics

Brought to you compliments of: Increasingly, data is viewed as the lifeblood of organizations. Across industries, information is sliced, diced and analyzed for trends, anomalies and insights that lead to better outcomes and strategies. In support of this, more and more organizations have adopted business intelligence (BI) solutions that help them fully capitalize on the data at their fingertips. In fact, according to Gartner, the worldwide market for BI platforms, analytics applications and performance manage- ment software market grew to $12.2 billion in 2011. Moreover, a recent Gartner survey found that CIOs list BI and analytics technology as their No. 1 priority for 2012.1

It’s no surprise that these BI tools are increasingly used in conjunction with enterprise applica- tions such as customer relationship management, enterprise resource planning and enterprise asset management, to name a few. By applying an analytics layer to these mission-critical applications, organizations derive greater value from the data they gather. Plucking new insights from and making more use of the data at their disposal helps businesses boost the ROI on these significant software investments.

That said, in a 2010 IBM/MIT Sloan Management Review survey of 3,000 executives across 30 industries in 100 countries, 60 percent of respondents said they have more data than they can effectively use.2 And most organizations are missing out on a tremendous opportunity to bring a richer dimension to their data, namely in the form of location-specific information related to their businesses. While organizations capture a vast amount of data associated with locations (for example, store fronts, service centers, warehouse addresses and sales territories), many are unaware of its value or struggle to make use of it. As such, they put themselves at a competitive disadvantage.

Market Research Brief

Answering the ‘Where’ in Your BI

How Are Maps Used? Let Us Count the Ways…

A Disconnect Between Perceived Value and Prioritization

Making Do Instead of Being Strategic

Users Are Behind in Their Awareness

Conclusion

About Esri

Click to navigate

A TechTarget/Esri 2012 survey of more than 180 business and IT managers and staff at organiza- tions of all sizes across multiple industries reveals some important trends and insights when it comes to location-based data:

• The use of maps to view business data in its geographical context is growing in importance.

• Managers and executives find it important to map data to manage everything from assets and customers to the field workforce and supply chains, as well as for operational aware- ness, real estate planning and risk management.

• A gap exists between the growing awareness of the importance of location-based data and the ability of organizations to make effective use of the data.

• While many organizations use simple online maps to view the location component of their business data, far too many still rely on ad hoc tools versus applications designed to analyze the geographic relationships in BI data.

• Most respondents associate data mapping with traditional geographic information systems (GIS) rather than with the newest generation of BI-specific GIS tools available to support this mapping.

This research brief further explores these issues and provides insight into why organizations may be struggling — or overlooking the opportunity — to take advantage of all the data in their environment.

Answering the ‘Where’ in Your BI For years, organizations have relied on business intelligence tools to delve into their data and unearth important insights that inform better decisions. With these tools, they’re able to determine what happened and when. Yet it’s as if these organizations have been sitting on a two-legged stool. After all, virtually every important question in an organization is asked in the context of “where,” the third leg in any well-balanced stool. As Deloitte says, “Time and place underpin everything that happens in our lives and everything we know and learn about the world. Today’s technology allows us to collect information about nearly all of these events, fueling an explosion of real-time, location-aware data.”3

Location analytics is the use of tools that enable organizations to visualize the relationship between corporate data, such as revenues and inventory, and location-specific data, such as customer and facility addresses. Specifically, these tools extend the value of traditional BI appli- cations by letting people visualize, question, analyze, interpret and understand data. As a result, location analytics helps unearth relationships, patterns and trends that would otherwise remain locked away.

It’s no surprise that a growing number of organizations are embracing the concept of location analytics. In the TechTarget/Esri 2012 survey, just over three-quarters of respondents said executives in their organizations feel it’s somewhat or very important to use maps to view business data such as store locations, distribution networks, sales territories, revenue by region and competitor locations.

Market Research Brief

Answering the ‘Where’ in Your BI

How Are Maps Used? Let Us Count the Ways…

A Disconnect Between Perceived Value and Prioritization

Making Do Instead of Being Strategic

Users Are Behind in Their Awareness

Conclusion

About Esri

Click to navigate

How Are Maps Used? Let Us Count the Ways… Managers and executives within these organizations are using mapped data for a range of reasons, including:

• Asset management • Business intelligence • Customer relationship management • Enterprise resource management • Field workforce management • Operational awareness • Real estate planning • Risk management • Supply chain management

While no means an exhaustive list, these examples represent some of the most common uses of maps within organizations.

The survey provides insight into how executives and managers perceive the value of maps differently in the areas above. The widest divergence was seen in the following:

• Asset management: Nearly 47 percent of managers compared with just over 36 percent of executives view maps as somewhat or very valuable for asset management.

• Field workforce management: Just over 55 percent of managers compared with nearly 40 percent of executives see maps as somewhat or very valuable for field workforce management.

• Real estate planning: Just over 36 percent of executives compared with just over 24 percent of managers see maps as somewhat or very valuable for real estate planning.

• Risk management: Nearly 42 percent of executives compared with just over 34 percent of managers see maps as somewhat or very valuable for risk management.

Importance of viewing data on a map

Don’t know 1.1%

Not very important 23.1% Very important 36.8%

Somewhat important 39.0%

Market Research Brief

Answering the ‘Where’ in Your BI

How Are Maps Used? Let Us Count the Ways…

A Disconnect Between Perceived Value and Prioritization

Making Do Instead of Being Strategic

Users Are Behind in Their Awareness

Conclusion

About Esri

Click to navigate

These results may be due to the fact that executives and managers have different organizational responsibilities and priorities. In other words, managers may be more focused on asset and field workforce management than executives, while executives may be more concerned with real estate planning and risk management than their managers.

A Disconnect Between Perceived Value and Prioritization In spite of the growing importance of using maps to understand the “where” associated with business activities, the majority of organizations view mapping of business intelligence activities as a “nice to have” capability versus an essential one. Specifically:

• Less than 10 percent of respondents see mapping as unimportant.

• One-third view it as essential.

• More than half view it as “nice to have.”

Not surprisingly, many of those who view mapping as essential work in industries that have historically relied on location-related data: energy/utilities/telecom, government/federal, healthcare and retail.

The following are examples of how these industries typically use this type of data:

• Energy/utilities/telecom: to pinpoint the best locations for exploration and expansion

• Governments: to analyze population trends and resource utilization

• Healthcare: to track infectious diseases and analyze healthcare demands according to populations

• Retail: to perform site selection and market analysis

The role of mapping in business intelligence activities

Don’t know 1.6% Unimportant 9.3% Essential 33.0%

Nice to have 56.0%

Market Research Brief

Answering the ‘Where’ in Your BI

How Are Maps Used? Let Us Count the Ways…

A Disconnect Between Perceived Value and Prioritization

Making Do Instead of Being Strategic

Users Are Behind in Their Awareness

Conclusion

About Esri

Click to navigate

Making Do Instead of Being Strategic This prevailing attitude of mapping as a “nice to have” may help explain why most survey respondents rely on online tools or ad hoc means to view the location component of their business data. In spite of the actionable business intelligence to be derived from this data:

• Over 35 percent use online tools

• Nearly 20 percent view this data in an ad hoc manner using spreadsheets, presentations, etc.

• Just over 13 percent use mapping tools within their BI solution

• Just over 12 percent don’t use any tools or don’t know what tools are used

• Over 10 percent use custom tools/APIs

• Just over 2.5 percent use commercial off-the-shelf (COTS) solutions

Old habits, the consumerization of IT and general misconceptions or lack of awareness about location analytics may help explain the fact that location mapping is viewed as a “nice to have.” For decades, organizations have tried to use spreadsheets and other general tools to make sense of their data — despite countless studies showing the inefficacy of such an approach. At the same time, people often call upon the tools they use outside of work to do their jobs, so it’s logical that they would turn to online tools when trying to make sense of location-specific data in their organizations.

Moreover, in organizations where location analytics is seen as “nice to have” versus essential, there’s likely little push to adopt more robust tools for viewing location-related data. As a result, many users turn to freely available, simple mapping tools or preconfigured graphic representations of maps. Finally, the relative newness of location analytics is another key reason for the slow adoption of advanced tools, such as those embedded within BI solutions. Yet, according to Directions Magazine, “… in 2004, integration of location and BI tools was hardly discussed; now it’s considered a must in all BI solutions.”4

Means used to view the location component of business data

None/Don’t know 12.1% Ad hoc from spreadsheets, presentations, etc. 19.8%

Online tools 35.2%

Others (please specify): 6.6%

Custom tools/APIs 10.4%

COTS solutions 2.7%

Mapping tools within our BI solution 13.2%

Market Research Brief

Answering the ‘Where’ in Your BI

How Are Maps Used? Let Us Count the Ways…

A Disconnect Between Perceived Value and Prioritization

Making Do Instead of Being Strategic

Users Are Behind in Their Awareness

Conclusion

About Esri

Click to navigate

Users Are Behind in Their Awareness Table 1 below shows survey respondents’ familiarity with terms used to describe ways of exploring geographic data, measured on a scale of 1 to 5, with 5 indicating “most familiar.” More respon- dents recognized terms such as GIS and geographic information systems than terms used in conjunction with tools designed specifically to help visualize the relationship between corporate data and location-specific data. In other words, across many industries, people may be unaware of the powerful tools available in the market and think it impractical to add a geographic dimen- sion to their analysis and reporting.

As Deloitte points out in its Tech Trends 2012 report, early spatial modeling tools, such as those used by engineers and other specialists, required proprietary knowledge, specialized software and advanced training. Moreover, location-aware data was scarce and expensive. Plus, it was time consuming to develop many of the models using these specialized tools, and as a result, the underlying data was often out of date by the time a map was created.

Much has changed in 2012, according to Deloitte. Organizations have ready access to geographic data due to the proliferation of mobile, social and sensor-based sources. Perhaps most important, today’s analytics tools are easier to use, allowing everyday users to more readily and intuitively explore complex data in a visual manner.5

Least Most

1 2 3 4 5

14.8% 20.3% 29.1% 23.1% 12.6%

17.6% 25.3% 29.7% 17.6% 9.9%

13.7% 24.7% 31.9% 18.7% 11.0%

19.2% 18.1% 24.2% 22.5% 15.9%

18.7% 13.7% 22.5% 14.3% 30.8%

20.9% 23.1% 25.8% 17.0% 13.2%

9.9% 13.7% 24.7% 20.3% 31.3%

10.4% 8.8% 23.6% 31.9% 25.3%

18.1% 18.1% 28.0% 20.3% 15.4%

Location analytics

Location-aware analytics

Location intelligence

Geospatial business intelligence

GIS

Spatial analytics

Geographic information systems

Data mapping

Dynamic mapping

Familiarity with terms related to location analytics

Market Research Brief

Answering the ‘Where’ in Your BI

How Are Maps Used? Let Us Count the Ways…

A Disconnect Between Perceived Value and Prioritization

Making Do Instead of Being Strategic

Users Are Behind in Their Awareness

Click to navigate

Conclusion As more products and services become commoditized, the time-to-decision window shrinks and globalization increases competitive pressures, organizations are seeking every opportunity to stand apart from their rivals and improve their top and bottom lines. The information gathered across their environments is a gold mine for those that can find ways to fully extract the valuable nuggets from the data piles. And progressive organizations recognize that the next frontier of competitive differentiation is to be found in exploring and exploiting the location-based informa- tion at their disposal.

The key is to tap into today’s advanced tools that make it possible to capitalize on the location component of existing corporate data assets. As Deloitte says, “In the past, only a handful of geographic information system (GIS) analysts in specific industries (oil and gas, governmental agencies, transportation and logistics firms) invested in using location as an organizing principle for advanced analysis. New tools and access to data are now allowing the power of location to be unleashed across many more business areas and to a much broader base of users.”6

In fact, with the growing consumption of location-based consumer services on mobile devices, it’s only a matter of time before users start demanding the ability to access location analytics within their organizations.

About Esri

Since 1969, Esri has been giving customers around the world the power to think and plan geographically. The market leader in GIS technology, Esri software is used in more than 300,000 organizations worldwide including each of the 200 largest cities in the United States, most national governments, more than two-thirds of Fortune 500 companies, and more than 7,000 colleges and universities. Esri applications, running on more than one million desktops and thousands of Web and enterprise servers, provide the backbone for the world’s mapping and spatial analysis. Esri is the only vendor that provides complete technical solutions for desktop, mobile, server, and Internet platforms. Visit us at esri.com/news.

1 TechTarget, BI, analytics and performance management software sees growth in 2011, May 24, 2012 2 IBM, IBM Transforms Data At Work, Accelerates Big Data Analytics, October 24, 2011 3 Deloitte, Tech Trends 2012: Elevate IT for digital business, 2012 4 Directions Magazine, Directions Magazine and Oracle Bring the Power of Place to Business and Government, 2012 5 Deloitte, Tech Trends 2012: Elevate IT for digital business, 2012 6 Ibid

Learn more about integrating Esri mapping solutions with your BI.

Contact an Esri BI specialist at [email protected] to get started.

Answering the ‘Where’ in Your BI

How Are Maps Used? Let Us Count the Ways…

A Disconnect Between Perceived Value and Prioritization

Making Do Instead of Being Strategic

Users Are Behind in Their Awareness

Conclusion

About Esri

Click to navigate

Revealing the ‘Where’ of Business Intelligence using Location Analytics

Market Research Brief

Answering the ‘Where’ in Your BI

How Are Maps Used? Let Us Count the Ways…

A Disconnect Between Perceived Value and Prioritization

Making Do Instead of Being Strategic

Users Are Behind in Their Awareness

Conclusion

About Esri

Click to navigate

• The use of maps to view business data in its geographical context is growing in importance.

• A gap exists between the growing awareness of the importance of location-based data and the ability of organizations to make effective use of the data.

• Most respondents associate data mapping with traditional geographic information systems (GIS) rather than with the newest generation of BI-specific GIS tools available to support this mapping.

Market Research Brief

Answering the ‘Where’ in Your BI

How Are Maps Used? Let Us Count the Ways…

A Disconnect Between Perceived Value and Prioritization

Making Do Instead of Being Strategic

Users Are Behind in Their Awareness

Conclusion

About Esri

Click to navigate

How Are Maps Used? Let Us Count the Ways… Managers and executives within these organizations are using mapped data for a range of reasons, including:

While no means an exhaustive list, these examples represent some of the most common uses of maps within organizations.

The survey provides insight into how executives and managers perceive the value of maps differently in the areas above. The widest divergence was seen in the following:

• Asset management: Nearly 47 percent of managers compared with just over 36 percent of executives view maps as somewhat or very valuable for asset management.

• Field workforce management: Just over 55 percent of managers compared with nearly 40 percent of executives see maps as somewhat or very valuable for field workforce management.

• Real estate planning: Just over 36 percent of executives compared with just over 24 percent of managers see maps as somewhat or very valuable for real estate planning.

• Risk management: Nearly 42 percent of executives compared with just over 34 percent of managers see maps as somewhat or very valuable for risk management.

Importance of viewing data on a map

Don’t know 1.1%

Not very important 23.1% Very important 36.8%

Somewhat important 39.0%

Market Research Brief

Answering the ‘Where’ in Your BI

How Are Maps Used? Let Us Count the Ways…

A Disconnect Between Perceived Value and Prioritization

Making Do Instead of Being Strategic

Users Are Behind in Their Awareness

Conclusion

About Esri

Click to navigate

• Less than 10 percent of respondents see mapping as unimportant.

• One-third view it as essential.

• More than half view it as “nice to have.”

The following are examples of how these industries typically use this type of data:

• Energy/utilities/telecom: to pinpoint the best locations for exploration and expansion

• Governments: to analyze population trends and resource utilization

• Healthcare: to track infectious diseases and analyze healthcare demands according to populations

• Retail: to perform site selection and market analysis

The role of mapping in business intelligence activities

Don’t know 1.6% Unimportant 9.3% Essential 33.0%

Nice to have 56.0%

Market Research Brief

Answering the ‘Where’ in Your BI

How Are Maps Used? Let Us Count the Ways…

A Disconnect Between Perceived Value and Prioritization

Making Do Instead of Being Strategic

Users Are Behind in Their Awareness

Conclusion

About Esri

Click to navigate

• Over 35 percent use online tools

• Nearly 20 percent view this data in an ad hoc manner using spreadsheets, presentations, etc.

• Just over 13 percent use mapping tools within their BI solution

• Just over 12 percent don’t use any tools or don’t know what tools are used

• Over 10 percent use custom tools/APIs

• Just over 2.5 percent use commercial off-the-shelf (COTS) solutions

Means used to view the location component of business data

None/Don’t know 12.1% Ad hoc from spreadsheets, presentations, etc. 19.8%

Online tools 35.2%

Others (please specify): 6.6%

Custom tools/APIs 10.4%

COTS solutions 2.7%

Mapping tools within our BI solution 13.2%

Market Research Brief

Answering the ‘Where’ in Your BI

How Are Maps Used? Let Us Count the Ways…

A Disconnect Between Perceived Value and Prioritization

Making Do Instead of Being Strategic

Users Are Behind in Their Awareness

Conclusion

About Esri

Click to navigate

Least Most

1 2 3 4 5

14.8% 20.3% 29.1% 23.1% 12.6%

17.6% 25.3% 29.7% 17.6% 9.9%

13.7% 24.7% 31.9% 18.7% 11.0%

19.2% 18.1% 24.2% 22.5% 15.9%

18.7% 13.7% 22.5% 14.3% 30.8%

20.9% 23.1% 25.8% 17.0% 13.2%

9.9% 13.7% 24.7% 20.3% 31.3%

10.4% 8.8% 23.6% 31.9% 25.3%

18.1% 18.1% 28.0% 20.3% 15.4%

Location analytics

Location-aware analytics

Location intelligence

Geospatial business intelligence

GIS

Spatial analytics

Geographic information systems

Data mapping

Dynamic mapping

Familiarity with terms related to location analytics

Market Research Brief

Answering the ‘Where’ in Your BI

How Are Maps Used? Let Us Count the Ways…

A Disconnect Between Perceived Value and Prioritization

Making Do Instead of Being Strategic

Users Are Behind in Their Awareness

Click to navigate

About Esri

Learn more about integrating Esri mapping solutions with your BI.

Contact an Esri BI specialist at [email protected] to get started.

localization-not-jus

t-location.pdf