Business ApplicationsBusiness Applications of of GGeographic eographic IInformation nformation
SSystemsystems((GISGIS))Richard G. Born
Operations Management & Information SystemsCollege of Business
Northern Illinois UniversityDeKalb, Illinois USA
October, 2008
Outline
Introduction to Business Geographics Business Geographies and Censuses Case Study: Walgreens Drug Stores GIS Software: Microsoft MapPoint Business GIS Projects at the Northern
Illinois University College of Business
Why Study Business GIS Systems?
It is estimated that 80% of all corporate data has content that is geographic.
GeographicGeographic
What is “geographic content”?
Postal CodePostal Code
Telephone NumberTelephone Number
CityCity
State/Region/District/ProvinceState/Region/District/Province
CountryCountry
Street AddressStreet Address
… any data that has location information and could be plotted on a map.
Why 80% geographic content? Manufacturers Suppliers Shippers Customers Stores Warehouses/distribution centers Financial institutions Stockholders Competitors
… any entity that is of interest to a company has address information that can be mapped.
The time has come to …
…treat geographic data as an organizational assetasset
…realize the value of geo-information as a key business driverbusiness driver
…easily spot trends, patterns, and trends, patterns, and opportunitiesopportunities that are difficult with traditional techniques
…provide an excitingexciting way to view and analyze business information
Which is more enlightening?
… this table of data
Which is more enlightening?… or this map
…
Why are businesses slow at adopting GIS solutions? Many executives are unaware of
the existence of business GIS Benefits of GIS are largely
intangible GIS cost vs. perceived value is
not obvious GIS vendors do not educate
mainstream business on how to demonstrate the power of GIS
BusinessRules
Customer Database
Census Information
Customer Profile
Report
Direct M
ail Campaigns
SHARP RISEIN SALES!!!
…why slow at adopting GIS? GIS tends to be implemented at the bottom
layers of a company – by the worker bees Relatively few universities have business
schools with courses in business GIS
Notable exception…NIU’s College of Business
Business GIS Courses at NIU
OMIS 679. BUSINESS GEOGRAPHICS (3)OMIS 679. BUSINESS GEOGRAPHICS (3)Examination of geographic information systems development and use from the perspective of contemporary business. Extensive computer laboratory work designing specific geographic systems using commercially available software. CRQ: OMIS 652 or consent of department.
OMIS 379. BUSINESS APPLICATIONS OF OMIS 379. BUSINESS APPLICATIONS OF GEOGRAPHIC INFORMATION SYSTEMS (3)GEOGRAPHIC INFORMATION SYSTEMS (3) Examination of leveraging an organization’s spatial data to analyze and solve business problems. Extensive computer laboratory work designing business geographic services using commercially available software. PRQ: GEOG 256 or OMIS 351, or consent of department.
In what department within a typical company does GIS belong?
Marketing – customer penetration study
BusinessRules
Customer DatabaseArea demographics
Postal Codes for nextDirect Mail Campaign
IT DepartmentServer requirementsDatabase developmentPlanning and networking
Finance Department
BusinessRules
Customer Database
Dissemination of MAPS showing
Sales, Revenue, andProfitability Information
…which department? Planning Department
Growing new marketsGrowing the customer baseAdding locations for:
○ Stores○ Warehouses○ Distribution Centers
Operations Department
Supply Chain GISIdentify areas
needing optimization
GIS can greatly benefit virtually every department within a company!!!
Business Value By Layering
Business Value By Layering
Business Value By Layering
Business Value By Layering
Patterns, Opportunities, New questions?
Business Geographies (United States)
Business Geography
Total Number
Typical # of Households
States 51 1,862,745
MSAs 303 250,000
Counties 3141 30,245
ZIP Codes 41,940 3,167
Census Tracts 61,257 1,551
Block Groups 226,399 420
Carrier Routes 556,821 171
Blocks 6,500,000 22
ZIP + 4s 28,000,000 10
Government Census Every 10 Years
Business Geographics (Austria)
State (Bundesland)
District (Bezirk)
Municipality (Gemeinde)
Advantages of Census Taking Age Population Education Employment Ethnicity Expenditures Households Housing Income Levels
Industry Marital Status Occupation Transportation
Travel timeCommute time
Vehicles Ownership Crime Weather …..
Political Structuring in Bosnia and Herzegovina
2 Major Entitiesand the Brcko District
10 Cantons 137 Municipalities
*Maps from Wikipedia
Significant Fact: Last official census in 1991
Case Study: Walgreens A major U.S.
pharmacy chain 7,000 stores
planned by 2010
5 million customers/day
583 million prescriptions in fiscal 2007
Typical store:14,500 sq. ft. (1300 sq. m.)
Staff of 25 – 30 peopleAnnual sales $8.5 million
Pharmacy, photo lab, cosmetics, general merchandise
Walgreens New Location Targeting
Determine 10 potential locations for a new Walgreens store in Tulsa, Oklahoma (USA)
Walgreens New Location Targeting
New sites cannot be less than 1 mile from an existing Walgreen store
Proposed locations must satisfy the following criteria:Prescription potential within a mile must
exceed 250 prescriptions/day Total daily intersection traffic must
exceed 20,000 carsThe fewer the competitors the better,
based upon supply and demand
Most important
Least important
Business Rules -- New Store Criteria
Walgreens New Location Targeting
1 Mi Rx/Day
Total Intersection Traffic
Competitors
337
279450
288
41K
32K
56K
23K
12
20
1
23
4
12
34
2
2 3
4
Potential4=High, 1=Low
12
3
3
9
12
2
68
2
2
4
After Weighting
X 3 =
X 1 =
X 2 =
6
4
3
20
1313
15
OverlayUsing ADD
HIGHEST VALUES
HAVE HIGHEST
POTENTIAL
Walgreens New Location Targeting
Walgreens New Location Targeting
One mile buffers are constructed around existing stores.
Walgreens New Location Targeting
Daily Block GroupPrescription Potential
Daily IntersectionTraffic
What factors affect the daily prescription potential?
Walgreens New Location Targeting
A Look at GIS Software Pricing
Microsoft Has Changed the Competition Has the know-how to price its desktop product
MapPoint affordably. Has made MapPoint easy to learn and use. Targets decision makers, not those who
create/maintain complex GIS data. Developed MapPoint Web Service (for
corporate internet mapping applications) Affordably bundles demographic data with
their software.USA Geographies include states, Metropolitan
Statistical Areas (MSAs), counties, ZIP codes, and census tracts
MapPoint’s Two VersionsMapPoint North America MapPoint Europe
United States Demographic Data
Streets and Roads for: Canada Mexico United States
Demographics for: Austria France Germany Great Britain Italy Netherlands Switzerland
Streets and Roads for many countries in Europe (but not Bosnia and Herzegovina)
Location-Enabled(understand location and how to process it)
Location-Aware (Real-Time)(application is also aware of its own location)
Disconnected(location information
and processingframework are all
on the hostcomputer’s hard disk)
Connected(network connectivity
is essential—location information
and processing framework are on a
remotely locatedhost service)
MapPoint 2009•Thematic mapping of corporate data
•Corporate territory management•Demographic mapping of census data
•Determining shortest/fastest routes
MapPoint 2009 Interfacedwith a GPS Device
•Real-time navigation•Real-time location-based information logging
MapPoint Web Service•Hosted by Microsoft
•Global location-based applicationsthat work for multiple countries
•Store finder•Best route to store•Find competitors
•Maintain custom points of interest
MapPoint Location Server•Hosted within your enterprise
•Enables real-time location scenariosusing locatable devices
•No GPS hardware/software needed•Finding nearby ATMs, restaurants,
motels, gas stations•Calculating driving directions
based on current locationand real-time traffic conditions
Disconnected, Location-enabled Projects ESRI ArcGIS Projects
Rockford MidTown DistrictBridges of RiverMistFamily Shelter ServicesSubaru Chicagoland District Sales
MapPoint ProjectsPlanned Parenthood AdvocacyAffordability of Homes in Kane and McHenry
Counties in Illinois
Rockford MidTown District Agency to make this area of
Rockford, IL a safe and enjoyable place to live and operate a business
Develop a GIS that would aid in trending, forecasting, and justifying its marketing and development plans
Crime maps help assess the effect of social programs to reduce crime rates.
Major lesson learned – the most difficult part of developing a business GIS is obtaining the data from the constituent parties. City government Police department Other agencies
RockfordMidTownDistrict Adding
features to a map: Streets Block
groups ZIP codes
Labeling features
Inserting Titles Legend Scale bar
Creating pie chart to show demographics
Bridges of Rivermist New subdivision in
DeKalb, IL (home of NIU) Goal was to produce maps
that could be used to market lots on the Web
Learning activities GPS collection of
control point data Heads-up digitization of
lots, streets, and ponds Joining corporate data
to geographic parcels Students had the feeling of
accomplishment in being the first to create a map of a new subdivision.
DuPage County Family Shelter Services An organization in
Illinois that provides shelters for immediate safety for domestic violence victims and their children
Goal was to determine the best location for a new shelter
Students learned: Joining corporate
data to spatial data Clipping features Creating map layers Creation of
graduated symbols Preprocessing of
data in Excel pivot tables
Subaru of America Automobile Sales
Subaru wanted a map that could be used to analyze sales in its Chicagoland districts
Students learned: How to create
Subaru defined territories by dissolving ZIP codes
Joining Subaru sales data to ZIP codes
Planned Parenthood Advocacy (PPA) An advocate of
reproductive rights and health issues wherever public policy is discussed
To better focus marketing efforts, requested maps to show clients by U.S. Congressional Districts
Students learned:How to geocode addresses to
the street levelHow to import ESRI shape
files (e.g., U.S. 108th Congressional districts) into MapPoint via COM add-ins
108th Congressional Districts and PPA Clients
Affordability of Homes in Kaneand McHenry Counties in Illinois
Affordable—any home selling for less than or equal to the median selling price
Major finding—clusters of affordability
Students learned: Importing an Access
database into MapPoint
Aggregating data by using shaded area maps
Geocoding addresses
Connected, Location-enabled Projects A result of rapid increase in the use of
smart phones and pocket PCs Aided by advances in Visual Studio
2005 and 2008, including mobile application development on a pocket PC emulator.
MapPoint Web Service applications:Walgreens Store LocatorPocket PC Mapper
Walgreens Store Locator
Visual Basic Windows or ASP.NET project
Makes use of the MapPoint Web Service
Pocket PC Mapper
Built using Visual Basic 2005/2008
A pocket PC Device Application
Makes use of the MapPoint Web Service
Can find places as well as addresses
GIS methods are ideal for solving many business problems.
GIS allows you to analyze and visualize business problems in unique, effective new ways.
Biggest challenge in Bosnia and Herzegovina – obtaining current demographic data normally available through periodic censuses
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