Developing market-oriented strategies for Shaanxi Bureau ... · with private firms in providing data and value-added products to obtain more commercial ... customer satisfaction,

Developing market-oriented strategies for Shaanxi Bureau of Surveying and Mapping in

the Context of Local SDI

Daiqiong Zhang

March, 2008

Developing market-oriented strategies for Shaanxi Bureau of Surveying and Mapping

in the Context of Local SDI

by

Daiqiong Zhang

Thesis submitted to the International Institute for Geo-information Science and Earth Observation in

partial fulfilment of the requirements for the degree of Master of Science in Geo-information Science

and Earth Observation, Specialisation: (Geo-Information Management)

Thesis Assessment Board

Chairman: Prof. ir. P. van der Molen

External examiner: Mr. dr. ir. J.A. Zevenbergen

Supervisor: Dr. A.M. Tuladhar

Second supervisor: Ir. W.T. de Vries

INTERNATIONAL INSTITUTE FOR GEO-INFORMATION SCIENCE AND EARTH OBSERVATION

ENSCHEDE, THE NETHERLANDS

Disclaimer This document describes work undertaken as part of a programme of study at the International Institute for Geo-information Science and Earth Observation. All views and opinions expressed therein remain the sole responsibility of the author, and do not necessarily represent those of the institute.

i

Abstract

Nowadays, the government is developing the Local Spatial Data Infrastructure (LSDI) within the

framework of "Digital Xi’an" in Xi’an City of China. Under this trend, the Shaanxi Bureau of

Surveying and Mapping (SBSM), a public mapping agency, has been mandated to change its main

mission from the data provider to making data available, and hence had a new responsibility to

facilitate the broadest access to and responsible use of the Geo-foundation data at “affordable” prices.

What is more, the SBSM’s budget from the Central Government has been reduced continuously.

Accordingly, it is necessary for the SBSM to adapt to the changes in the market need for competing

with private firms in providing data and value-added products to obtain more commercial revenue.

Therefore, the SBSM is undergoing a major transformation from a budget-oriented to a market-

oriented organization.

To arrive at this objective, market-oriented strategies are developed by a SWOT analysis for the

SBSM in this research. Firstly, a conceptual framework is constructed, composed of factors for GI

market failure & non- market failure, characteristics of a budget-oriented organization and a market-

oriented one, and indicators for SWOT. Secondly, by fieldwork, the budget status of SBSM (internal

environment) and the local GI market in Xi’an (external environment) have been described. Thirdly,

based on the fieldwork data and the indicators for SWOT, strengths and weaknesses of the SBSM and

opportunities and threats in the market are ascertained. Then, market-oriented strategies are

developed, in light of a SWOT analysis and the factors for GI market failure and GI non-market

failure. After that, the effects of the proposed strategies are evaluated by the qualitative criteria of

customer satisfaction, timeliness and responding to change. In the end, one strategy, “develop a

market-oriented production workflow” is selected for modelling and testing by Unified Modelling

Language and Tecnomatix Plan Simulation software.

The evaluation results illustrate that these strategies can contribute to gaining customer trust,

delivering products in time and flexible responding to changes. The simulation results on testing an

alternative production workflow suggest production time and cost can be decreased. It is

recommended that more alternatives should be tested because predictions on different alternatives are

required to find out the best one for putting it into practice.

ii

Acknowledgements

I would like to give my sincere appreciation to all those who in various ways contributed to the

completing of my study at ITC, particularly to the Netherlands Fellowship Program (NFP) and

Government of the Netherlands for offering me the opportunity to study at the International Institute

for Geo-information Science and Earth Observation (ITC).

First of all I wish to send my sincere gratitude to my supervisors, Dr. Arbind Tuladhar and Ir. Walter

de Vries, for their appropriate guidance and advice useful in making my research work critical and

logical. Simultaneously, they provided books and articles which were significant for constructing the

conceptual framework of my study. What is more, they were quite patient to read my theses to find

grammar mistakes and incomplete arguments.

Then I want to express thanks to our university in China for providing me such a great chance to study

at ITC, especially to Professor Ma and Professor Zou. They are my supervisors in China and gave me

a lot of helps and good suggestions to finish my study.

I am also thankful to Miss. Li Xia and Miss Liu Lingling. They helped me to collected data in the

fieldwork and gave me useful information and advice.

Simultaneously, I wish to express my gratitude to my colleagues and friends at ITC who helped me a

lot. It was a pleasure to have chance to study with them. The precious memories with their kindness

during the study period will be kept in my heart deeply.

In the end, I also wish to thank my friends in China for our good-fellowships and my parents for their

constant support and encouragement.

iii

Table of contents

1. Introduction...................................................................................................................1 1.1. Background .........................................................................................................1 1.2. Research problem................................................................................................2 1.3. Research objectives.............................................................................................3 1.4. Research questions..............................................................................................3 1.5. Research methodologies......................................................................................3 1.6. Thesis structure ...................................................................................................4

2. Conceptual framework..................................................................................................6 2.1. Introduction.........................................................................................................6 2.2. Market theory......................................................................................................7

2.2.1. Market activities ......................................................................................7 2.2.2. Non-market activities...............................................................................7

2.3. GI market and GI economic characteristics ........................................................8 2.3.1. GI market Definition................................................................................8 2.3.2. GI economic characteristics.....................................................................8

2.4. SDI and GI market status ....................................................................................9 2.4.1. SDI definition and roles...........................................................................9 2.4.2. Status on GI market .................................................................................9 2.4.3. Factors for GI market and GI non-market failure ....................................9

2.5. Characteristics of budget-oriented and market-oriented organization ..............15 2.6. Indicators for Opportunity, Threat, Strength and Weakness.............................18 2.7. Concluding remarks ..........................................................................................19

3. Understanding budget status of the SBSM and local GI Market in Xi’an..................20 3.1. Introduction.......................................................................................................20 3.2. General information of the SBSM ....................................................................20 3.3. Approach...........................................................................................................21

3.3.1. Purpose of the fieldwork........................................................................21 3.3.2. Justifications for selected respondents...................................................22 3.3.3. Fieldwork schedule and methodology used...........................................22

3.4. Budget status of the SBSM ...............................................................................24 3.4.1. Primary characteristics...........................................................................24 3.4.2. Funding..................................................................................................24 3.4.3. Human resources ...................................................................................25 3.4.4. GI technology facilities..........................................................................25 3.4.5. Production & service .............................................................................26 3.4.6. Customer related....................................................................................27

3.5. Local GI Market in Xi’an..................................................................................28 3.5.1. Opinion of using GI ...............................................................................28 3.5.2. Supply and demand................................................................................29 3.5.3. Cooperation & Competition ..................................................................30 3.5.4. Policies...................................................................................................30 3.5.5. Data standards........................................................................................31 3.5.6. ICT infrastructure ..................................................................................31 3.5.7. Effects of “Digital Xi’an” ......................................................................31

3.6. Overview of approach .......................................................................................32 3.7. Concluding remarks ..........................................................................................32

iv

4. Developing market-oriented strategies by SWOT Analysis .......................................33 4.1. Introduction .......................................................................................................33 4.2. Analysis of local GI market...............................................................................33

4.2.1. Opportunities..........................................................................................33 4.2.2. Threats....................................................................................................34

4.3. Assessment of the budget status of the SBSM..................................................35 4.3.1. Strengths.................................................................................................35 4.3.2. Weaknesses ............................................................................................36

4.4. Strategies by SWOT analysis ............................................................................37 4.5. Selecting qualitative criteria ..............................................................................39

4.5.1. General qualitative criteria.....................................................................39 4.5.2. Criteria used in special practice .............................................................40 4.5.3. Selection of qualitative criteria ..............................................................40

4.6. Evaluating strategies..........................................................................................41 4.7. Concluding remarks ..........................................................................................44

5. Modeling and simulation ............................................................................................45 5.1. Introduction .......................................................................................................45 5.2. Approach ...........................................................................................................45

5.2.1. Workflow ...............................................................................................45 5.2.2. Tools for modelling workflow ...............................................................46 5.2.3. Two phases of modelling .......................................................................46

5.3. Modelling current budget-oriented production workflow with UML...............47 5.4. Modeling an alternative production workflow with UML................................50 5.5. Simulating .........................................................................................................51

5.5.1. Assumption of simulation ......................................................................51 5.5.2. Translate Activity Diagram to simulation model...................................52 5.5.3. Setting input data ...................................................................................53 5.5.4. Run and collect output statistics ............................................................55

5.6. Analyzing collectied output data .......................................................................58 5.6.1. Comparing performances of these two workflows ................................58 5.6.2. Identifying bottlenecks in new production workflow ............................59

5.7. Concluding remarks ..........................................................................................59 6. Conclusions & Recommendations..............................................................................61

6.1. Introduction .......................................................................................................61 6.2. Conclusions .......................................................................................................61 6.3. Recommendations .............................................................................................64

References.................................................................................................................................66 Appendix I: GI provider organizations .....................................................................................68 Appendix II: Questionnaire for Understanding the SBSM .......................................................69 Appendix III: Questionnaire for GI market (1) .........................................................................73 Appendix IV: Questionnaire for GI market (2).........................................................................76

v

List of figures

Figure 1-1 Research flow diagram...................................................................................................5 Figure 2-1 Conceptual framework ...................................................................................................6 Figure 3-1 SPGC setting.................................................................................................................21 Figure 3-2 Percentage of interview groups ....................................................................................24 Figure 3-3 Percentage of the commercial revenue from different products ..................................24 Figure 3-4 Ways of adopting new ICT...........................................................................................25 Figure 3-5 Percentage of distributing ways....................................................................................26 Figure 3-6 Percentage of customer groups.....................................................................................27 Figure 3-7 Increasing percentages of customers yearly .................................................................27 Figure 3-8 Challenging factors for boosting GI market .................................................................29 Figure 3-9 Chain of supply and demand ........................................................................................30 Figure 4-1 The approach for developing strategies........................................................................33 Figure 5-1 Two phases of modelling..............................................................................................48 Figure 5-2 Activity Diagram for current production workflow .....................................................49 Figure 5-3 Activity Diagram of an alternative production workflow ............................................51 Figure 5-4 Simulation workflow of current budget-oriented production process..........................52 Figure 5-5 Simulation workflow of the alternative production process ........................................53 Figure 5-6 Working time % for 3 key activities in current production workflow .........................56 Figure 5-7 Working time % for 3 key activities in alternative production workflow....................56

vi

List of tables

Table 2-1 GI market status for UK, USA and Canada.................................................................. 12 Table 2-2 Comparison of a budget-oriented and a market-oriented one....................................... 16 Table 2-3 Indicators for analytical concepts ................................................................................. 19 Table 3-1 Scope of Required Data ................................................................................................ 21 Table 3-2 Fieldwork schedule ....................................................................................................... 22 Table 3-3 Percentage of returned questionnaire............................................................................ 23 Table 3-4 Percentage of interview groups..................................................................................... 23 Table 3-5 Opinion on price list on the website ............................................................................. 27 Table 3-6 Opinion on access to foundation GI data...................................................................... 28 Table 4-1 SWOT analysis and strategies ...................................................................................... 37 Table 4-2 Qualitative criteria performance assessment ................................................................ 40 Table 4-3 Qualitative criteria for evaluating strategies................................................................. 41 Table 4-4 Results of evaluating proposed strategies..................................................................... 43 Table 5-1 Process time for current production workflow ............................................................. 54 Table 5-2 Process time for alternative production workflow........................................................ 54 Table 5-3 Resources for alternative workflow.............................................................................. 55 Table 5-4 Resources for current production workflow................................................................. 55 Table 5-5 Cost for the alternative workflow ................................................................................. 55 Table 5-6 Cost for current production workflow .......................................................................... 55 Table 5-7 PTT for current production workflow .......................................................................... 57 Table 5-8 PTT for alternative production workflow..................................................................... 57 Table 5-9 Percentage of working time in current production workflow....................................... 57 Table 5-10 Percentage of working time in alternative production workflow ............................... 58 Table 5-11 Production cost for current production workflow and new one ................................. 58 Table 5-12 Result of comparing current workflow with the alternative one ................................ 59

DEVELOPING MARKET-ORIENTED STRATEGIES FOR SHAANXI BUREAU OF SURVEYING AND MAPPING IN THE CONTEXT OF LSDI

1

1. Introduction

1.1. Background

In Xi’an City of China, the government is developing the Local Spatial Data Infrastructure (LSDI),

within the framework so called "Digital Xi’an" that will be carried out in the near future. Under this

framework, the foundation data or basic geo-data is prepared by the Shaanxi Bureau of Surveying and

Mapping (SBSM). The SBSM is a public mapping agency guided by the Central Government, and its

products and services are being commercialized. It means, conforming to Freedom of Information Act,

that the SBSM is obliged to give free access, or access at a reasonable price, to the information

concerned. Currently, there is an increasing need of a diversity of geospatial data products and

services based on a customer-needs and growing proliferation of Information Technology (IT) in the

local Geo-Information (GI) market (Pengde 2005). Therefore, many private companies are being

involved into the GI market to provide new value-adding products. In spite of these changes in the

environment, the SBSM has been slow in responding to the market needs. As a result, the monopoly

of the SBSM is challenged, the competitive power of the SBSM is decreasing and its market share is

getting thin. In order to make this organization adaptable to the market changes and improve its

competitive power, there have been debates to transform from a budget-oriented organization to a

market- oriented one.

Apart from the external factors, there are also some internal forces that propel this transformation.

The Central Government has changed the main mission of the SBSM from data provider to making

the data available and sharable for the prosperity of the market. Once data is available, the demand for

GI would multiply its market share as it gives an immense scope for value-adding products in the GI

market. Moreover, the organization experiences budget reduction and demands revenue generation, in

the context of governmental reform and privatization (Pengde 2006). Besides, poor performance in

terms of content, quality, efficiency and timeliness of their products results from the budget-oriented

strategies. Therefore, the client community of the SBSM falls back on cheaper and often simpler but

more up-to-date products from whatever sources may be available. This, in turn, leads to the loss of

the positive externalities, costly duplication, reduced and incompatible accessibility of existing data,

increased transaction costs and possibly reduced timeliness in decision making processes. In many

ways it impedes full exploitation of ICT for the benefit of society in geospatial data application.

Consequently, the SBSM needs to develop new market-oriented strategies for the transformation from

a budget-oriented organization. The meaning of market-oriented is orienting a organization's culture

around the customers, the competitors, the price and other entities in the GI market environment (Day

1994). Many studies suggest that it is essential to incorporate market orientation into strategic

management research to fully understand and predict important outcomes (Gupta 2001).


2

1.2. Research problem

Various reports emphasized that GI has potentially a high economic value (Von Rimscha 1996).

Fornefeld (2000) considers GI as a location factor and an economic asset for companies in all

business areas, including service providers, engineering agencies and public administration. He

further argues that whoever provides the appropriate GI, it can be positioned successfully in the

market. Accordingly, besides facilitating the data sharing, SDI also offers a space to unfold the

economic potential of GI. Moreover, understanding the economic value of GI and taking action to

develop and exploit the market potential might be both a means and an end to achieve the

development of SDI. In other words, the success of a SDI initiative primarily depends on the market

demand for related services and products. In this situation, public mapping agencies have the

responsibility for making data availability and using transparent mechanism through appropriate

pricing and policies to stimulate the demand in a GI market.

However, in the process of developing LSDI in Xi’an City, the SBSM, as the public mapping agency

and the major GI provider, still underestimates the economic value of GI and the role of GI market.

That means, directed only by budget, it does not know factors for GI market failure and non-market

failure. What is more, with the GI market that is becoming more and more open, new products and

services are commercially available, and ‘natural monopolies’ of the SBSM are being challenged.

Therefore, the SBSM has to change its strategies from budget-oriented to market-oriented, and the

driving forces are summarized below:

External forces:

• According to Freedom of Information Act, the SBSM is obliged to give free access, or access

at a price, to the foundation data;

• The GIS-market is fast developing and new generation of GI users is merging;

• Diversification of GI products is required by customer;

• The surveying and mapping technology has become increasingly embedded in software and

accessible to the non-specialists in the GI market, with the continuous development in

information technology and its fast impact on the geo-information industry;

• New competitors are merging who are encouraged by the presence of cheap technology and

easy access to raw spatial data and have a flexible approach to adapt to changing

requirements;

Internal forces:

• Its main mission mandated by the Central Government has changed from data provider to

making the data available at “affordable” prices;

• The SBSM’s budgets from the Central Government have been reduced continuously and there

is a need to generate commercial revenue for supporting its existence;

• Its poor performance in content, quality, efficiency and the long delays in responding to GIS

users, resulting from the budget-oriented strategies, leads to user’s dissatisfaction;

The main research problem is the issue of transforming from a budget-oriented organization to a

market-oriented one in the context of LSDI to become economically efficient, viable, and customer-

friendly in the competitive market without losing its new mission.


3

1.3. Research objectives

The aim of this research is to develop market-oriented strategies for the SBSM in the context of LSDI

to make it fully use the economic potential of GI, gradually be independent of government budgets,

and perform its new mission. It is divided into four sub-objectives.

• To identify factors for GI market failure and non-market failure respectively by examining the

status of GI markets internationally

• To compare characteristics of a budget-oriented organization and a market-oriented one

• To scan characteristics of a local GI market in Xi’an and understand the budget status of the

SBSM

• To develop market-oriented strategies for the SBSM in the context of LSDI in Xi’an by a

SWOT analysis.

1.4. Research questions

For each sub-objective, the following questions are formulated:

� To identify factors for GI market failure and non-market failure respectively by examining the status of GI markets internationally Q1: What factors make GI market failure and non-market failure, respectively?

� To compare characteristics of a budget-oriented organization and a market-oriented one Q2: What are characteristics of a budget-oriented organization and a market-oriented one?

� To understand the budget status of the SBSM and scan characteristics of the local GI market in Xi’an Q3: What is the budget status of the SBSM?

Q4: What are characteristics of the local GI market in Xi’an?

� To develop market-oriented strategies for the SBSM in the context of LSDI in Xi’an by a SWOT analysis. Q5: What are opportunity, threat, strength and weakness faced by the SBSM?

Q6: What are market-oriented strategies for the SBSM?

Q7: How to model and simulate one of the proposed strategies?

1.5. Research methodologies

In this research, there are five main phases, namely Literature review, Field work, SWOT Analysis,

Develop & test market-oriented strategies, and Model and simulate. Figure 1-1 gives a summary of the

research flow among these phases.

Phase 1 - Literature review for building a conceptual framework (answers for Q 1, Q 2) By literature review, firstly, the related concepts of market (market and non-market activities), GI

economic characteristics and SDI roles in GI markets are explained. Secondly, based on these

concepts, the GI market status of UK, USA and Canada are examined in nine perspectives (demand

and supply, cooperation and competition, government intervention, data sharing policies, pricing

policies, data standards, ICT infrastructure and SDI) to find out factors for GI market failure & non-

market failure. Thirdly, characteristics of budget-oriented organizations are compared with market-

oriented ones in perspectives (presented in Table 2-2). In the end, according to the characteristics of

market-oriented organization, indicators of opportunity, threat, strength, weakness for an organization

in the period of privatization are identified.


4

Phase 2 - Field work (answers for Q 3, Q4) In this phase, the fieldwork is conducted for scanning the budget status of the SBSM and the local GI

market in Xi’an. Different data collection sources (such as questionnaire, interview, getting related

materials of reports, articles, books, journals, planning schedule, annual budgets, regulations and so

on) are used. The budget status of the SBSM is described in the perspectives used for comparing

budget-oriented organizations with market-oriented ones in Phase 1; the local GI market are described

in the perspectives used for understanding the GI market status of UK, USA and Canada in Phase 1.

Phase 3 - SWOT Analysis (answers for Q 5) A SWOT analysis is used to develop market-oriented strategies. Considering indicators for SWOT in

Phase 1 as criteria, based on analyzing data from fieldwork, this phase ascertains opportunities and

threats in the environmental and strengths and weaknesses of the SBSM.

Phase 4 – Develop & test market-oriented strategies (answers for Q 6) Market-oriented strategies are developed based on a SWOT analysis and the factors for GI market

failure and GI non-market failure Phase 1. After that, the effects of the proposed strategies are tested

in view of qualitative criteria, which are determined by referring to the generally and specially used

criteria and the SBSM’s vision.

Phase 5 - Model and simulate (answers for Q 7)

One of the proposed strategies is selected for modelling & simulating with Unified Modelling

Language (UML) and Tecnomatix Budget Simulation (TPS) software.

1.6. Thesis structure

Chapter 1 Introduction In this chapter, the background, research problem, research objectives, research question, and research

methodology and structure of thesis are introduced.

Chapter 2 Conceptual framework This chapter develops the conceptual framework based on literature review. Firstly, an explanation of

related market theories is shown. Secondly, the definitions of a GI market and GI economic

characteristics are specified. Thirdly, the definition of SDI and its role in the GI market are illustrated.

Then, based on these theories, on one hand, the status of the GI markets in UK, USA and Canada is

compared to identify factors for GI market failure and non-GI market failure respectively; on the other

hand, a comparison of budget-oriented organizations and market-oriented ones is concluded. In the

end, indicators for SWOT are developed for a organization during the privatization stage.

Chapter 3 Understanding budget status of the SBSM and local GI market in Xi’an This chapter illustrates how to collect data during the fieldwork, to understand the budget status of the

SBSM and local GI market characteristics.

Chapter 4 Developing market-oriented strategies by SOWT Analysis Based on the fieldwork findings and the indicators for SWOT, this chapter determines the

opportunities & threats of the local GI market environment, and strengths & weaknesses of the SBSM.

Then, it develops market-oriented strategies by a SWOT analysis and tests them using qualitative

criteria.


5

Chapter 5 Modelling and simulation One of the proposed strategies is selected, for modelling and simulation. The output analysis is used

to develop guidelines for implementation of this strategy.

Chapter 6 Conclusions and recommendations This chapter formulates conclusions, based on the research findings. Furthermore, recommendations

for further research are included.

Figure 1-1 Research flow diagram

Data

Criteria

Perspectives

Perspectives

Phase 1 Literature review

Phase 2 Field work

Scanning local GI

Market in Xi’an

Phase 3 SWOT Analysis

Opportunity & Threat

Strength & weakness

Phase 4 Develop & test market-oriented strategies

Case study

of GI market

Characteristics of

budget & market

Factors for GI market &

non- market failure

Phase 5

Model & simulate

Indicators for

opportunity, threat,

strength, weakness

Understanding

budget status

of SBSM


6

2. Conceptual framework

2.1. Introduction

This chapter specifies the conceptual framework, which contains the basic concepts (market, GI

economic characteristics and SDI roles in GI market), factors for GI market failure & non- market

failure, characteristics of a budget-oriented organization and a market-oriented one and indicators of

opportunity, threat, strength, weakness for an organization which is in the period of privatization.

Their relation is shown in Figure 2-1.

The structure of this chapter is: Section 2.1 gives the introduction of this chapter; Section 2.2 explains

related market theories constituted by market activities and non-market activities; Section 2.3

specifies definition of GI market and GI economic characteristics; Section 2.4 illustrates the roles of

SDI on GI market, check the status of the GI markets in UK, USA and Canada, and finally identifies

the factors for GI market failure and non-GI market failure respectively; Section 2.5 compares the

characteristics of the budget-oriented public organization and the market-oriented one by examining;

Section 2.6 specifies the indicators for SWOT; Section 2.7 concludes the conceptual framework.

Figure 2-1 Conceptual framework

Market

theory

Factors for GI

market failure &

non- market

GI SDI

Conceptual framework

Case study

of GI market

Indicators for Opportunity,

Threat, Strength and

weakness

Characteristic

s of budget

& market


7

2.2. Market theory

A market is defined as an area over which buyers and sellers negotiate the exchange of a well-defined

commodity (Frank 2000). There are two hands in a market, an "invisible” hand related to market

activities and a “visible” hand related to non-market activities. Although most developed nations

could be classified as having mixed hands, they are often said to have an "invisible” hand because

they allow market forces to drive most of their activities, and typically be engaging in government

intervention only to the extent that it is needed to provide stability. Therefore, this section specifies

the related concepts and laws.

2.2.1. Market activities

Market activities are "invisible” hands in a market, which advocate forces within a competitive market

to determine how resources should be allocated. Accordingly, they work on the assumption that

supply and demand are the best determinants of what is right for a nation's well being.

2.2.1.1. “Demand “concept

The amount of a commodity that a customer wishes to purchase is called the quantity demanded. It is

a flow expressed as so much per period of time. It is determined by the commodity’s own price, the

price of related commodities, average customer income, tastes, the distribution of income among

customers and the size of population (Frank 2000). So, the demand represent relationship between

price and quantity demanded for a particular good and service in particular circumstances, that is high

demand produces high prices, vice versa.

2.2.1.2. “Supply” concept

The amount of a commodity that a firm wishes to sell is called the quantity supplied. It is a flow

expressed as so much per period of time. It is determined by the commodity’s own price, the price of

related commodities, the costs of factors of production, the goals of the firm and the state of

technology (Frank 2000). So, the supply represent relationship between price and quantity supplied

for a particular good and service in particular circumstances, that is if the price increase, the firm will

increase the quantity supplied.

2.2.2. Non-market activities

Non-market activities are “visible” hands in a market, which relies on the government to decide how

the country's resources would best be allocated. Accordingly, according to NetTel (2004), government

intervention may seek to correct for the distortions created by market mechanism and to improve the

efficiency in the way that markets operate. � Taxation of monopoly profits � Policies to introduce competition into markets (de-regulation) � Direct provision of public goods � Price controls for the recently privatized utilities � Price fixing � Licensee quotas � Enacting economic policy The sole purpose of economic policies is to facilitate and encourage effective competition where

feasible, and to provide an effective substitute for competition where that is not possible, at least for a

substantial period. The underlying premise of the new policy is that where completion is effective it


8

can do a better job of protecting and promoting the public interest than any government agency.

Therefore where and only where, competition is either absent or too weak to do the job, it is

appropriate for the regular to step in (McLaughlin 2000). There are three significant policies in

market: copy right policy, which protects the original work and guarantees the author of the work is

the owner of the copyright upon creation of the work; access right policy, which specifies the access

restrictions and access rights; pricing policy, which makes sure cost recovery and consistent pricing

criteria.

2.3. GI market and GI economic characteristics

GI is defined as all information that has a spatial context encompassing a growing number of datasets,

many of which are combined to provide information requirements for the end user (Oxera 1999). It is

also be defined as information which can be related to specific locations on the Earth covering an

enormous range, including the distribution of natural resources, the incidence of pollutants,

descriptions of infrastructure such as buildings, utility and transport services, patterns of land use and

the health, wealth, employment, housing and voting habits of people (Chorley 1987). In reality, GI can

be produced, add value in value chains, packaged, offered for sale, purchased and paid for. So, GI has

value, and value can be added in service chain and depends on application domain, delivery time and

quality. The essential value of GI qualifies it as an economic good. Therefore, this section clarifies the

GI market definition and its economic characteristics.

2.3.1. GI market Definition

A GI market is defined as a special market in which all the products and services concerning status

maps and basic data mapping, such as the cadastre maps, the real property register, the topographic

mapping as well as aerial photographs. Masser (2004) illustrates how GI is obtained through

expenditure of effort and resources. He argues that GI originally was being provided by government

organizations that were mandated to provide the data and services for the general welfare to the

people and this was regulated out of the demand to meet the national obligations of government to its

citizens. But, now, many private companies are involved into GI markets with availability of ICT.

2.3.2. GI economic characteristics

In all application domains, such as flood mitigation, environmental restoration, community land use

assessments and disaster recovery, GI has been regarded as a location factor and an economic asset

for companies. As a result, the characteristics of GI in economic aspect are identified (Martinez

2003):

• Non-rival in consumption: when a client obtains GI for individual use, one’s person consumption

does not reduce another person’s consumption of the same good. Thus the marginal cost of

supplying an additional unit of dataset is zero.

• Non-excludable in consumption: nobody can be prevented from consumption. This holds if the GI

is freely available or almost free at production cost. This has been supported for instance by laws

in the U.S. which allows greater access to government information at the all government levels.

• Non-rejectable: individuals cannot abstain from their consumption even if they want to.

With its economic characteristics, GI is usually regarded as public good and its economic value is

always underestimated. It could arouse considering use of GI as automatic right. If so, motivation to

pay and produce will not exist and market will not allocate GI resources efficiently.


9

2.4. SDI and GI market status

Stimulating the GI market might be both a means and an end to achieve the development of SDI; also

success of a SDI initiative will primarily influence market demand for related services and products.

Consequently, in this section, firstly, SDI definition and its roles in GI market are explained. Then, the

status of the GI market in United Kingdom (UK), United States of America (USA) and Candada,

where NSDI initiatives are in advanced stage of maturity, is examined. Their success and failure

experiences need to be analysed to find out factors for GI market failure and non-GI market failure.

2.4.1. SDI definition and roles

The geospatial data business can be divided into the preparation of the foundation data sets for all

other public and private thematic applications as a common spatial reference for end-users, and for

value-adding users. End-users take the foundation data (FD) and add attribute values or other thematic

data for their own purpose. Value adding users do the same for resale to the third parties. In a network

of digital geospatial dada environment, the consistent availability of up to date and reliable FD opens

opportunities for a broad sharing of this FD set. In addition, it facilitates participation in the

information market by all thematic geospatial data owner who apply the FD and who thus become part

of the information economy. This environment is called SDI. So, the objective of SDI is to support the

availability and access to GI, and facilitate the data sharing by connecting different GI provider

organizations together (Groot 2000).

The roles of SDI in a GI market are summarized as:

• SDI improves access to available spatial data and promotes its reuse.

• Private companies, as the value-adding users, become more active with the easy access to Geo-

ICT.

• GI markets can have a common SDI metadata server providing efficient search, access and

locating tools.

• The cooperation of private companies and government can be harmonized by related policies and

regulations established for developing SDI.

• The transaction cost will be reduced as a result of the timely availability of FD at reasonable cost.

2.4.2. Status on GI market

Transactions in GI market involve perspectives which are demand and supply, cooperation and

competition, government intervention, data sharing policies (copy right, access rights), pricing

policies, data standards, ICT infrastructure and SDI. So from these perspectives, GI market status of

UK, USA and Canada is scanned, based on references (OS 2004; Masser 2004; Bamps 2003; FGDC

2000), briefly presented in Table 2-1.

2.4.3. Factors for GI market and GI non-market fail ure

Based on the related concepts (market, GI economic characteristics and SDI roles in GI market), the

GI market status of UK, USA and Canada is studied in this section to find out factors for GI market

and GI non-market failure. Paying attention to factors for GI market and GI non-market failure can

boost GI market and make it in order.


10

Market properties Perspectives

UK USA Canada

Demand and

supply

A heterogeneous customer

group is divided into the

business sector (responsible for

80% of total revenues) and the

individual sector (Report 2004).

Ordnance Survey (OS) and the

national mapping agency for

Great Britain provide the basic

reference framework and

infrastructure for Great Britain,

And separate government

agencies provide most of GI.

The customers are

Government agencies, Private

sector, Non-Profit

organisations and General

Public.

Government and public sectors

collect and use most GI.

Private companies generally

add value to foundation data

(FGDC 2000).

The customers could be from all

the sectors of Canada –

Government agencies, Private

sector, General Public, Non-

Profit organisations and Others.

GeoConnections brings together

all levels of government, the

private sector, and academia to

create GI data (Masser 2004).

Cooperation

The Inter-government Group on

Geographic Information (IGGI),

was formed in 1993 in order to

enable UK Government

departments to cooperate

effectively and exchange best

practice for geographic

Information (Report 2004).

Steps have been taken to

improve the coordination of

government GIS efforts

(FGDC 2000) .

GeoConnections include a

police on partnership:

collaborating in partnership with

various levels of government,

the private sector and the

academic community to

capitalize on their collective

expertise and to ensure the

seamless delivery of information

(Masser 2004).

Competition

While OS remains the leader in

the business sector, the intensity

of competition has increased

significantly in recent years.

Many competitors also combine

the role of information

providers, System Suppliers and

Value-Added Resellers (VARs )

to provide a complete package

of services to customers.

A level playing field in the

market for both public and

private sectors is enforced for

avoiding unfair competition.

The strategies focus on

cooperation of all stakeholders

not competition to attract

greater private-sector support

and participation (FGDC

2000).

The GeoConnections

Secretariat, a part of the Earth

Science Sector (ESS),

coordinates the partnership

initiative that makes geo-spatial

data and services accessible

through the Internet. The

strategies also focus on

cooperation not competition.

Government

intervention

In the region where a formal

commitment is absent, the roles

of government with respect to

NGDF is passive; while in the

region where a formal

commitment exists, the roles of

government with respect to

NGDF is as a facilitator (Masser

2004).

Federal agencies place GI on

the clearinghouse nodes to

make their data sets more

accessible to other government

agencies as well as to for-

profit businesses, non-profit

Organizations and citizens

(FGDC 2000).

The Canadian government set

up and funded GeoConnections

in 1999, which brings together

all levels of government, the

private sector, and academia to

work toward the establishment

and implementation of the

CGDI (Masser 2004).

data sharing

policies(copy right,

Crown copyright protects Public

Copyright is not available for

Different license agreements are

entered into with users for


11

access rights) geoinformation.

Some access right refers to

making some local government

information accessible. Others

refer to making environmental

information, held by central and

local government and bodies,

accessible (Report 2004).

any work of the United States

Government. Copyright

protection subsists in original

works of authorship and the

author of the work is the

owner of the copyright upon

creation of the work.

The U.S. Freedom of

Information Act and the Open

Records Laws of the

individual states create a

balance between the right of

citizens to be informed about

government activities and the

need to maintain

confidentiality of some

government records (FGDC

2000).

different kinds of uses including

issues like warranty, liability,

indemnity, terms, termination of

agreement, and dispute

resolution e.g. non-exclusive,

fully paid royalty-free right and

license to exercise all

Intellectual Property Rights in

the data for Federal Agencies.

Making geospatial data

accessible on the internet so that

business, government and

Canadians can download

geospatial information on

demand, 24 hours per day, 365

days per year (Masser 2004).

pricing policies

The UK government directs its

agencies to recover costs

through charges and other

income-generating activities.

E.g. HM Land Registry and the

Meteorological Office are

having cost recovery rates in

excess of 100% (Report 2004).

The rate charged for data sets

from government agencies is

essentially the cost of

duplication (FGDC 2000).

There is no hidden cost and no

fine print. The pricing policies is

against starting bid low with

low-grade product offering

simply to qualify for tenders and

then work price up when the

data has been selected.

data standards

Registering the OS to ISO

standards

Much more work still needs to

be done to round out a

comprehensive set of

standards and to ensure that

they are being broadly applied

(Masser 2004).

Ensuring that information

matches international standands,

so that Canada can share

information with other nations,

and Canada business can sell

geospatial information

technology and services in the

global marketplace (Masser

2004).

ICT infrastructure

Adoption of an open, extensible

and flexible format, providing

widespread interoperability and

supporting web services

(Masser 2004).

On-line GDI Clearinghouse

nodes document and provide

metadata. Development and

availability of seamless spatial

database. Development of data

access and retrieval tools

(Masser 2004).

Support for reporting technical

problems relating to access or

use of the GeoBase portal and

data / data extraction are

provided over the Internet

separately at two different

websites so as to improve

system reliability and ensure

customer / user satisfaction.

(Masser 2004).

SDI

A critical factor in SDI

development is the devolution

of power from one region to

It has a very large area, so the

large number of various

organizations is involved in

There is a long tradition of

database management at

province level and the private


12

another.

The Association for Geographic

Information (AGI) public and

private sectors represent the GI

community as a whole (public +

private). AGI is currently

hosting the web-based metadata

service and GI-gateway

(Bamps 2003).

for data collection of SDI.

FGDC promotes coordinated

use, sharing, and

dissemination of geospatial

data on a national basis

(Masser 2004).

sector plays an important role in

the formulation of the CGDI

(Masser 2004).

Table 2-1 GI market status for UK, USA and Canada

2.4.3.1. Factors for GI market failure

• The monopoly of the foundation data production

The monopoly of the foundation data production exist in UK, which means the National Mapping

Organization (NMO) in fact control production of framework data maps monopolistically or almost

monopolistically. A problem of unfair competition arises when firms compete with NMO for the

production for which they need the foundation data kept by NMO. Unless prevented from doing so,

the NMO will take advantage of its monopoly and charge itself less than other firms or use it freely. It

leads to wide differences in income and wealth between different GI groups. And this inequality will

become more and more severe if we do nothing about it. Moreover, the costs of certain types of

datasets maybe go up, since NMO is not as good as other companies at producing them. This result in

some resources is wasted and some are not fully used, which lead to market failure.

• Lack of geospatial data standards

In USA, much more work still needs to be done to round out a comprehensive set of standards and to

ensure that they are being broadly applied. Market failures can be triggered because organizations are

failing to develop standard for data or adopt already existing standard to enable or facilitate data

sharing. So bodies should be created that focus solely on geospatial information standard. The

creation of new bodies, possible after coordination of the organizations, in turn, can be realized by

and according to the national policy. In addition, to sustain the developed or adopted common

standard, the GI organizations need to be committed in applying of the standards for all geo-

information products. Similarly to facilitate data sharing, the meaning of data delivered from one

institution to another need to be clear. To this effect, it is essential to include meta-data, standards for

transforming data from one system to another, method to describe the data, quality of the data, etc

(UN/ECE 1996). Moreover, the standard issue extends to include standard for database schema, file

exchangeable format, and data collection, because difference in databases results in different rules for

objects categorization, database model, GIS platforms, etc.

2.4.3.2. Factors for GI non-market failure

• Applying a level playing field to public-private competition

UK enforces policy of a level playing field for ensuring the fair competition. So the in-house group

can compete fairly with outside private contractors, and vice versa. In light of this police, if the SBSM

use the foundation data for adding value, it must be charged the same price as other competitors. Of

cause the SBSM, as a monopolist, will not do so out of its own volition (Groot 2000). Therefore the

independent regulator oversees that this policy is being adhered to. By this way, the NMA could be

prevented from abuse of its monopoly, and a fair and competitive environment in the value-added part


13

of the business could be created. Therefore, the market forces, as a clear mechanism, work in the GI

market. So non-market failure could arise from the fair competition due to a level playing field for

public-private competition.

Martinez identifies many of the principal design features of a fair system; they are (Martinez 2003):

I. Process design issues a. Public and private sectors should submit their bids in parallel, not in sequence.

b. The public agency should have access to consultant help.

c. An independent body should evaluate public-sector proposals and bids.

d. The government purchaser and the government provider should be separate entities.

II. Cost Issues a. Government should not mandate private-sector wages or benefits.

b. Government should not establish a minimum savings threshold.

c. Using “avoidable cost” in the cost calculation favours the public sector; using “fully allocated

cost” favours the private sector.

d. Transaction costs should be either excluded or included symmetrically, viz., included for the

public sector when current delivery is private and for the private sector when current delivery

is public.

e. Contract administration and monitoring costs should be either excluded or included

symmetrically, like transaction costs.

III. Contract Administration a. If a contract is awarded to the public agency, the terms should be documented in a

memorandum of understanding.

b. The performance of the public or private contractor should be monitored.

c. The contract terms for the public or private contractor should include a penalty for failure to

perform, and the penalty should be imposed whenever justified.

• Efficient government intervention

In general market, government intervention may seek to correct for the distortions created by market

mechanism and to improve the efficiency in the way that markets operate. However, in GI market,

apart from this function, government has another function, i.e. coordinator of organizations. They

need to evoke incentive of every organization to take part in developing SDI. For example, the

Canadian government set up and funded GeoConnections in 1999, which brings together all levels of

government, the private sector, and academia to work toward the establishment and implementation of

the CGDI. Efficient government intervention therefore can make market in order and promoting data

sharing. This will raise non-market failure.

• Appropriate data pricing

UK, USA and Canada have different pricing adapted to their different reality. The pricing of data is

strongly associated with the issues such as appropriate price, the right of individuals to get open

access to data, and cost recovery polices. Krek (1999) notes that cost associated with acquiring

information about the GI product or service that is a subject of trade and choosing, organizing,

negotiating, and entering into contracts is called transaction cost. The exchange of a geo-information

product or service is a transaction and involves transaction cost. Searching for information about the

geo-information product, its characteristics, estimating its quality and usability, defining and


14

measuring the rights transferred with the trade- all raise the transaction cost to the potential buyer.

Mohamed (1998) points out that barriers to the fuller exploitation of information in GI market are not

so much technical or even financial, but rather issues as, among others, pricing. Mitigating of this

problem will lead, to the question what price should be paid for geospatial data, and how the price is

determined. With the appropriate data pricing mechanism, GI market can boost and non-market failure

can be evoked since the investment in production is able to be insured. So, organizations that are

promoting business according to customer need have pricing methods for their products. For example,

OS (2004) indicates the Ordnances Survey has pricing models to determine price for its core products.

The model consists of five factors:

� Value to customer � Information content relative to other ordnance survey products � Effect of competitive force and existing price structure in the market � Investment funding required to continue to meet customer requirements � The need for the Trading fund to break even

• Balance between access right and copyright

The government in UK acts EC Treaty to avoid imbalance between access right and copyright as

much as possible. There is dilemma how to optimize access and at the same time ensure protection

measure is in place. It means that accessing of data is associated with protection of data. On one hand,

to protect the commercial value of creative work, and insure public information not to be copyrighted,

copyright policy is to be in place. In certain situations, if a public organization does not have full

rights to the information it is producing, it cannot, in turn, license the material for commercial

exploitation. On the other hand, access right also needs to be given emphasis for sharing of GI

products. Main reason for that is that the private citizens can have access to the GI found in the public

GI organizations (Kenneth 1995). It is because the public organizations are using the public money to

produce the information (Wilson 1996). Hence, all citizens of the country must have access to those

data. Consequently, balance point between access right and copyright should be determined and non-

market failures will happen.

Generally, the public interest can be served by insuring the following:

� Unlimited and efficient production and access

� Broadest possible access, and

� Lowest possible cost (de Vries & Beerens, 2002).

• Cooperation of GI organizations

Cooperation is common in UK, USA and Canada. Cooperation of the organizations would be realized

in their legal mandate and obligation on the one hand; and in commitment to be coordinated on the

other. It can be based on exchange (sell, trade, share) data, or creation of data (Guthrie 1994). The

commitment needs to include sharing resources, and planning and making decision together. So, the

producers and users can ensure non-duplication of efforts, and establish partnership for developing

and transferring data between databases. Moreover, in decentralized organizations system, for

maintaining standard of data at a national level, coordination among the organizations between at

central level and regional level is crucial. Pinto (1999) also looks the organizational cooperation from

geographic information relationships. For them, cooperation is inter-organizational structures and

polices employed, and the history and process undergone in coordinating multi-participant and

establishing sharing relationships. Such cooperation will also lead the organizations to develop codes


15

and standard (metadata) and clearinghouse concepts (Mohamed 1998). Consequently, cooperation of

GI organizations can lead to non-market failure

• Availability of ICT infrastructure

UK, USA and Canada all use ICT infrastructure for facilitating data access and share in the market:

� Providing the basic reference framework and infrastructure for providers and users

� Adoption of an open, extensible and flexible format

� Providing widespread interoperability and supporting web services

� Clearinghouse nodes used to document and provide metadata.

� Development and availability of seamless spatial database

� Development of data access and retrieval tools.

2.5. Characteristics of budget-oriented and market- oriented organization

"Commercialization is defined as a process where markets are established for selected public sector

goods and services in order to increase competitive pressures on suppliers" commercialization may be

concerned both with delivering services on a commercial basis to increase efficiency through

competitive mechanisms and reorienting budgetary processes and funding regimes to a more

commercial focus to achieve cost savings" (de Vries; Beerens 2002). The major causes and objectives

of those public sectors transformation from budget-oriented to market-oriented in both developed and

developing countries have been to overcome public sector inefficiencies, reduce monopoly, minimize

budget deficits, relax trade protection, streamline public expenditure, generate revenue, expand

competition, encourage foreign investment, improve service quality, and increase customer

satisfaction (Haque 2001). Comparison of a budget-oriented organization with a market-oriented one

is shown in Table 2-2, based on the references (Guthrie 1994; Considine 2001; Oefinger 2002; Groot

2000; Petch 1999; Frank 2000).

• Primary virtue:

A budget-oriented organization is mandated by the government and its mission is to achieve the goals

that the government has made. So, it is goal-driven and cannot aim at making profits. However, a

market-oriented organization sells its products and provides service and thereby collects money. In

competition with other sellers, its revenue relies on commercial income, such as product sales,

publications, mailing lists, etc. In order to get more money, it must reduce the cost, so it is cost-

oriented and aims at making profit.

• Form of control:

The budget-oriented organization accords to a scheme or budget to perform their functions, redesign

institutional arrangements and organizational forms and even manage processes and accounting

systems (Guthrie 1994). However, in the market-oriented organization, competition and quasi markets

are introduced into the sector, and contracts underpin relationships within the sector or with other

sectors (Considine 2001). The contract approach incorporates the language (risk sharing, pay-for-

performance, and bonuses) and methods of the market, shifting risk to providers who get paid only for

successfully completed assignments (Frank 2000).


16

Perspectives Budget-oriented market-oriented

Primary virtue

Goal-driven

(Non-profit oriented)

Cost-driven

(profit oriented)

Form of control Budgets Contracts

Organization Centralized Decentralized

Funding way By government budget By commercial revenue

Adopting ICT By technology push By market demand push

Hiring employees By budget By market demand

Production Workflow Budget-oriented Demand-oriented

Service delivery focus Targets Prices

Pricing By budgeted system By cost and market value

Customer scope Government primarily Anybody willing to pay

Customer relation Provider and receiver Buyer and seller

Table 2-2 Comparison of a budget-oriented and a market-oriented one

• Organization (Considine 2001):

Typically, hierarchical and rigid in approach, a budget-oriented organization is controlled by public

laws, a strong public service ethos, and public servants. It is a centralized model in which strong top-

down managerial authority prevails, requiring layers of checking and auditing so as to reduce the

likelihood of large errors. However, in a market-oriented organization, hierarchical governance is

replaced by private ownership and competition and market incentives replace some of the traditional

notions of regulation by statute. Flexibility in decision making, empowerment of line managers to take

responsibility for and be accountable for their decisions and making private laws are introduced. So,

decentralization of managerial responsibility and authority is realized by risk management, Hands-on

professional management, explicit standards and measures of performance.

• Funding

A budget-oriented organization provides public service and goods free of charge, and is mainly

funded by the government budget. To help reduce government deficits, it is often instructed to

introduce revenue generation. However, this conflict with the demand of most parliamentary

democracies that enlarging the budgets outside of the control of parliamentary is illegal. Hence, its


17

hard earned revenue goes to the general treasury and not to the organization where the money could

be used to up date plants and equipment, improve the reward systems etc (Oefinger 2002). A market-

oriented organization sells commercial goods to customers and receives payment from them, so

funded by market. Then, the eared revenue is used for capacity building of the organization.

• Adopting ICT (Petch 1999)

A budget-oriented organization adopts new ICT through donation, aid, project, etc, in other words, by

technology-push. However, in a market-oriented organization, the technology is adopted by users’

demand-pull and integrated successfully into the organization. To this end, the organization should

have a policy or norm to assess users need in order to identify the technology that the society needs

and will be effective eventually.

• Hiring employees (Oefinger 2002)

In a budget-oriented organization, what workers and how many workers are introduced is determined

by budget and budget. However, in a market-oriented organization, the needs of new workers conform

to the needs of the market.

• Production Workflow (Considine 2001)

In a budget-oriented organization, the workflow is budget oriented, and only produces the standards

products for the government. And the quality is controlled only at the end stage of the production

workflow. However, in a market-oriented organization, the workflow is market-orientedand produces

diversified products according to customer requirements. And the quality is controlled the whole

workflow process.

• Service delivery focus (Petch 1999)

A budget-oriented organization is funded by the government and its task is only to serve the targets

determined also by the government. So its service delivery can only focus on the targets. However, a

market-oriented organization is funded by profits from market, so the price is the focus and must at

least recover the cost.

• Pricing (Petch 1999)

In a budget-oriented organization, the products are priced by budgeted system, while, in the market-

oriented organization they are priced by real cost and market value with consideration of the price of

the related commodities.

• Customer scope (Oefinger 2002)

For a budget-oriented organization, its customers are primarily within the government, since it is

funded by a government budget. However, for a market-oriented organization, its customers can be

anybody who is able to afford the price.

• Customer relation (Considine 2001)

For a budget-oriented organization, its relationship with customers is the same as provider and

receiver. So it only supplies standardized products to customer, regardless of their need changes.


18

However, for a market-oriented organization, its relationship with customers is seller and buyer.

Therefore it produces diversified products according to their need.

2.6. Indicators for Opportunity, Threat, Strength a nd Weakness

A SWOT analysis is used for developing market-oriented strategies in my research. Opportunity,

threat, strength and weakness are all concepts. Their definitions (Bamps 2003) are.

� An opportunity can be defined as an external fact or development that, if taken advantage of,

can substantially contribute to the realization of the organization’s missions.

� A threat can be defined as an external fact or development that has or can have a substantial

negative effect on an organization’s performance. Threats are challenges posed by

unfavourable trends or developments in the environment that will lead to the erosion of the

organization’s position if no corrective action is taken.

� A strength is therefore defined as an internal characteristic that contributes substantially to the

realization of the organization’s mission. A strength is any existing internal asset

(management, staff capacity/motivation, knowledge, resource, business links, etc.) well

placed to help to exploit opportunities (or to meet demands) and fight off threats.

� A weakness is an internal characteristic that threatens the functioning of the organization.

Weaknesses are internal conditions that erode the organization’s position, hamper co-

operation with others or obstruct the exploitation of opportunities.

Concepts are mental images or perceptions and there for their meanings vary markedly from

individual to individual. So, they are subjective impressions - their understanding may differ from

person to person. Hence, if you are using a concept in your study, you need to consider its

operationalisation, that is, how it will be measured. In most cases, to operationalise a concept you first

need to go through the process of identifying indicators- a set of criteria reflective of the concept

(Krek 1999).

In order to avoid subjectiveness as much as possible, the analytical concepts, opportunity, threat,

strength and weakness, should therefore be considered in light of the characteristics of market-

oriented organizations. So the indicators for these analytical concepts have been developed based on

the characteristics of market-oriented organizations, shown in Table 2-3. When a fact, issue, etc meets

at least one of the indicators for opportunity, it is regarded as an opportunity. The other analytical

concepts follow the same rule.


19

Analytical concepts

Indicators

opportunity

1. It could increase market share. 2. It could drive an organization to focus on customer. 3. It could facilitate adoption of customer-oriented technology 4. It could facilitate data access and distribution. 5. it could raise awareness of GI

threat

1. It could decrease market share 2. It could restrict data access and distribution 3. It could negatively effect performance, such as increase cost, bad

product quality and delay in delivery.

strength

1. It increases production efficiency. 2. It improves the quality of products. 3. It decreases cost of products. 4. It attracts customers’ attention.

weakness

1. It holds back producing diversified products conforming to customer needs.

2. It holds back increasing production efficiency. 3. It holds back improving the quality of products. 4. It holds back decreasing cost of products.

Table 2-3 Indicators for analytical concepts

2.7. Concluding remarks

In this chapter, the required conceptual framework has been specified, shown in Figure 2-1. By

literature review, firstly, the related concepts, that is, market (market and non-market activities), GI

economic characteristics and SDI roles in GI market, have been explained. Secondly, based on these

concepts, GI market status of UK, USA and Canada has been examined in nine perspectives (demand

and supply, cooperation and competition, government intervention, data sharing policies (copy right,

access rights), pricing policies, data standards, ICT infrastructure and SDI) to find out the factors for

GI market failure & non- market failure. Thirdly, from twelve perspectives (refer to Table 2-2) the

comparison of the characteristics of the budget-oriented organization and the market-oriented one has

been done. In the end, according to the characteristics of market-oriented organizations, the indicators

of opportunity, threat, strength, weakness for an organization which is in the period of privatization

have been identify.


20

3. Understanding budget status of the SBSM and local GI Market in Xi’an

3.1. Introduction

In this chapter, secondary data was gathered in the form of existing documents and websites, to know

general information about the SBSM. And primary data was collected during a five week fieldwork,

to examine the budget status of the SBSM and the local GI market in Xi’an.

The structure of this chapter is: Section 3.1 gives the introduction of this chapter; Section 3.2 clarifies

the general information of the SBSM, including the SBSM’s mission, roles in GI market and

department setting; Section 3.3 explains the approach of data collection, referring to purpose of the

fieldwork, justifications for select objects to be investigated, fieldwork schedule and methodology

used; Section 3.4 illustrates data acquired from questionnaire, which describe the budget status of the

SBSM in the six aspects mentioned above; Section 3.5 illustrates data acquired from interview, which

describe the local GI market in Xi’an in the six aspects mentioned above; Section 3.6 overviews the

fieldwork as per reliability, completeness and accuracy; Section 3.7 concludes the assessments of

fieldwork.

3.2. General information of the SBSM

The SBSM is a public mapping agency in Xi’an City and guided by the Central Government in

Beijing. It must conform to the public laws and perform its missions mandated by the Central

Government. It is experiencing budget reduction, and demands to generate revenue in light of possible

privatization. This means that the SBSM is encouraged to compete in the market to get more income,

without losing its vision, which is (Pengde 2005):

“The SBSM will take a leadership role in providing customer focused, cost effective and timely geo-

spatial data, information and intelligence for quickly responding to the changes in needs of geo-spatial

data sharing on LSDI and new GI market.”

• In light of its vision, the Central Government has mandated the SBSM’s missions (Pengde 2005):

� Produce, update, distribute and commercialize the foundation GI data � Facilitate the broadest access to and responsible use of the foundation data at “affordable”

prices � Provide customer focused, cost effective and timely products and services � Develop Local SDI data standards and metadata standards

• Organizational setting of the SBSM: The organization of the SBSM consists of two topographic surveying departments, one photogrammetry and Remote Sensing department, one quality control departments and one geomatics


21

centre, Shaanxi Provincial Geomatics Centre (SPGC).

SPGC has one general manager, six sections and 12 section managers (each section has two section

managers and 68 workers) (shown in Figure 3-1).

Figure 3-1 SPGC setting

3.3. Approach

This section describes fieldwork used as an approach to collect data. The scope contains purpose of

the fieldwork, justifications for selected respondents and fieldwork schedule and methodology.

3.3.1. Purpose of the fieldwork

The purpose of the fieldwork was to collect data for understanding the budget status of the SBSM and

the local GI market environment. The scope of the required data is shown in Table 3-1.

Specific objectives Information required

Understanding the budget status of the

SBSM

� primary characteristics � funding � human resources � GI technology facilities � production & services � customer related

Scanning the GI market environment

� opinion of using GI � demand and supply � cooperation & competition � policies � data standards � ICT infrastructure � effects of “Digital Xi’an”

Table 3-1 Scope of Required Data

Administration section

Database

section

Production

section

Reception

section

Delivery

section

Marketing

section


22

3.3.2. Justifications for selected respondents

The Shaanxi Provincial Geomatics Centre (SPGC) was selected to understand the budget status

related to production and supply of products and services. Being a main department of the SBSM, it

has the responsibility of storing the foundation geo-data of Shaanxi province, constructing geo-

database, maintaining geo-database, developing standards, and data dissemination. Also, it develops

and sells foundation geo-data products and Geo-information systems and provides services.

Internal opinions on the local GI market were different from external ones. So, to avoid bias and

incompleteness, both SPGC and other GI provider organizations in Xi’’an City were asked for

opinions on the GI market. The list of the GI provider organizations is given in Appendix I. From this

list, I selected other two public organizations, Xi’an Institute Surveying Mapping & Geotechnical

Investigation and Xi’an Academe of Coal-mine, one popular private company, SuperMap Company in

Beijing, and two universities, Xi’an University of Science and Technology and Chang’an University.

They include all kinds of GI provider organizations.

3.3.3. Fieldwork schedule and methodology used

There were three phases during the fieldwork in the data collection. The phases and methodology

used during the fieldwork are shown Table 3-2 and the required data are shown in Table 3-1.

Phases Activity Respondent Time Location Methodology

1

Investigation for

understanding the

budget status of

SBSM

Authority and workers

in The Shaanxi

Provincial Geomatics

Centre (SPGC) of the

SBSM

Sep 17 – Sep 27 Xi’an

Questionnaire and

additional interview

2

Investigation for

scanning GI

market

environment

Authority in SPGC of

the SBSM and GI

provider orgaizatioons

Sep 28 –Sep 31 Xi’an Interview

3 Summarizing data Oct 1 –Oct 20 Xi’an Summarizing

and consolidating

Table 3-2 Fieldwork schedule

• Phase 1 To understand the budget status of the SBSM, the investigation focused on SPGC, as mentioned in

Section 3.3.2. The method used was questionnaire. There were three reasons for selecting this method.

Firstly, the number of the respondents was large, and it was expected that there was not enough time

for interviews. Secondly, some respondents were workers and they were not good at talking. Last but

not least, the staff and managers in SPGC were very busy, so interviews during the working time were


23

impossible, so a questionnaire was sent to them by e-mail. They could answer it after work. The

questions were as clear and simple as possible. moreover I told them to contact me by either phone or

e-mail when they did not understand some words or had some requests.

The respondents were the 13 managers and 6 workers of different sections who had been working for

more than 5 years. The questionnaire was structured such that it contained both open and closed type

questions, such as “multiple choice”, yes or no answers, short explanation and statement. There were

42 questions and ten open accounted for 24% of the total. Similar questions were grouped together

into six sections, so that respondent could feel comfortable to answer. The answers were shown in

Table 3-3, which meant that the majority of the respondents have returned the questionnaire.

Objects Questionnaire

sent Response received

Return percentage

Answers

Manager 13 10 76.9%

Worker 6 6 100%

Total 19 16 84.2%

The closed questions were all answered

and the open ones were partly answered.

The answers for closed questions were

almost the same; the answers for open

were multiple.

Table 3-3 Percentage of returned questionnaire

• Phase 2 To scan the local GI market environment, the investigated objects included the authority in SPGC, and

GI experts in the selected GI organizations shown in Section 3.3.2. The constituents of interviewees

and the corresponding percentage were shown in Table 3-4 and Figure3-2. The method used was

mainly interviews. There were three reasons for this. Firstly, most of the questions were open and they

needed to be discussed openly. Secondly, the respondents were not so many and it did not take much

time for interview. Thirdly, all of them were GI experts, so it was better to use interviews to get new

ideas than to use questionnaires.

The interviews were structured and questions were rigid. The total number of questions was 23, and

the open ones were 17, accounting for 74%. The answers were that the answers for closed questions

were almost the same and the answers for open were a little multiple.

Objects Number Percentage

SPGC 3 38%

Other public organizations 2 25%

Private organizations 1 12%

Universities 2 25%

Total 8 100%

Table 3-4 Percentage of interview groups


24

Percentage of interviewees

38%

25%

12%

25% SPGC

publicorganizations

private organizations

universities

Figure 3-2 Percentage of interview groups

3.4. Budget status of the SBSM

The data of the budget status of the SBSM are described in terms of primary characteristics, funding,

human resources, GI technology facilities, production & services and customer related.

3.4.1. Primary characteristics

In spite of the general policy guidance from the Central Government to privatize the public sectors,

many respondents still think the organization is goal-driven (not-profit oriented); its form of control is

by budgets; its organization is centralized and cooperation among different sections is not efficient

since communication among sections is little and the responsibility of project managers are not clear

and often have difficulties in harmonizing the work of different sections. Hence, from these primary

characteristics, this organization is mainly budget-oriented now.

3.4.2. Funding

It is noticed in the questionnaires that the organization is partly funded by government budgets and

partly by selling GI product in the market. The latter accounts for 32%. Although the funds from the

former are more than those from the latter, most respondents consider the former has decreased slowly

(2 %< decreasing percentage <5 % in average year) and the latter has increased sharply (increasing

percentage > =5 % in average year) in the last five years. So, it is vital to enlarge its occupied area in

the market for making up the loss in government budgets. Products and services provided by the

SBSM are: 1 providing foundation GI data; 2 providing digital maps; 3 providing paper maps; 4

developing Geo-database for users; 5 developing thematic GIS; 6 digitalization and Visualization of

data; 7 Geo-information technical services; 8 Image Processing. Their percentage in the commercial

revenue is shown in Figure 3-3. It is obvious that the percentage of income from providing paper maps

is the largest. So, its main way of supply is very traditional.

Figure 3-3 Percentage of the commercial revenue from different products

percentages in the commercial revenue

111%

213%

348%

47%

510%

63%

75%

83%

1 2 3 4 5 6 7 8


25

It is a fact that the organization controls the commercial revenue centralized (majority of the

commercial revenue is given to the Central Government in Beijing and how to use it is also

determined by the Central Government not by itself), which is a characteristic of a budget-oriented

organization.

3.4.3. Human resources

There is a large pool of skilled and committed staff, more than 70, in the organization. And every year

it adopts new staff mainly by budget and selects training programs for them, which is used to improve

the qualities of staff. But the ones working on sales, marketing and dealing with customer relations

account for only 8.6%. So, the organization does not think highly of customer needs and changes in

the market.

3.4.4. GI technology facilities

it is pleasant to see that this organization is well equipped with hardware and software (hardware

includes data storing device, graph workstation, image scanner, output equipment with high

precision, intranet, internet and GPS; software includes domestic GIS software (e.g. MAPGIS,

SuperMap GIS), ARC/INFO, MapInfo Professional, Oracle, ARCSDE and image processing

software). Therefore, it uses the internet for selling products, but the servers are not enough (only has

3 ones).

Although it allocates a part of the budgets for new ICT introduction, (for example, it spends money on

adopting new equipments or GIS software.), it is nearly ineffective, as the majority of the respondents

think new technology is introduced by the Central Government or doing projects in the budget (they

both belong to technology push), but by demand push, shown in Figure 3-4. Consequently, the role of

the organizations in identifying based on users need assessment and negotiating with donors about

type of technology to be adopted is low or does not exist. Simultaneously, there are some difficulties

in adopting and using new technology facilities: lack of funds because of reduction in government

budget, lack of skill workers to use new technology facilities and how to adopt new technology

facilities without cutting off the production. These problems about technology facilities always appear

in a budget-oriented organization.

9

11

3

0

2

4

6

8

10

12

No. of respondents

donation bygovernment in

budget

doing propjets inbudget

demand push

ways of adopting new ICT

Figure 3-4 Ways of adopting new ICT


26

3.4.5. Production & service

The SBSM has a large quantity of the foundation data in digital form and these data are very accurate

and reliable. It includes topographic data, thematic data, which are extracted from topographic maps

and satellite images, digital urban maps about Xi’an city in the scale of 1:10,000, Satellite image and

aerial photography ( TM, SPOT images are available at the SBSM), Digital Elevation Model (DEM)

applied for disaster analysis and urban planning, Digital Orthophoto Map (DOM) used for updating of

vector data, Digital Line Graphic (DLG) (features of DLG include geodetic control point,

physiognomy and terrene factors, transportation and affiliated establishment, water system and

affiliated establishment, administrative boundary, and construction. DLG can be used to analyze

overlaying data; data query; and establish thematic attributes for the base of location for

transportation, population, natural resource, and water conservancy. The SBSM has 5577 in the scale

of 1:10,000; 596 in the scale of 1:50,000; and 30 in the scale of 1:250,000.), Digital Raster Graphic

(DRG) (SASM has 2028 in the scale of 1:10,000; 596 in the scale of 1:50,000) and GIS systems,

which are developed for projects or government decision making.

However, production workflow of the organization is budget-oriented, not demand-oriented. As a

result, most products provided are standardized. Since customer demands have been diversified, there

is a long delay in translating the requests into normal product specifications since there is no

specialized person to handle customer requests in different directions. Moreover, the digitizing

process is not automated but still laborious, time consuming and prone to mistakes; cartographic

process is lack of generalization rules; the current workflow has no capability to produce spatial data

in a seamless database where topographic information of a particular area can be extracted on

demand; information exchange uses passing printed sheets and its main way of distributing products is

in person (Figure 3-5). All of them have effects in the other parts of the process. Hence, poor

performance in terms of long process times, bad quality output and inefficiency persists.

Figure 3-5 Percentage of distributing ways

The organization prices the products mainly by producing similar products and budgeted system.

Under budgeted system, it is quit difficult or impossible to calculate true cost and establish pricing

policy based on true cost, because the costs are calculated in aggregated way for the whole

organizational activities, not in detail and specific way for each activities and tasks.

Most of respondents think the products and price list should be available on the organization website

(shown in Table 3-5).

Percentages of distributing ways

31%

69%

in person

by the internet


27

Selection available unavailabl

e

Percentage 25 % 75 %

Table 3-5 Opinion on price list on the website

3.4.6. Customer related

Figure 3-6 shows the SBSM’s customer groups. From it, it is clear that governments and public

organizations are main customers, separately accounting for 35% and 36%.

Percentages of customers

45%

11%8%

36%

Government

privateorganization

Academic/research organization

public org.

Figure 3-6 Percentage of customer groups

From 2002 to 2006, the total number of customers has increased rapidly, and the increasing

percentages have become larger and larger, shown in Figure 3-7 (Pengde 2006). So, the potential

economic value of GI has become obvious and the demand of GI has enlarged.

Figure 3-7 Increasing percentages of customers yearly

Although the organization has checked the needs and expectations of customers and finds that

customers want it to produce new products, it has not built a complete customer’s database.

Increasing percentages of customers yearly

0%1%

2%3%4%

5%6%7%

8%9%

2002 2003 2004 2005 2006 year


28

3.5. Local GI Market in Xi’an

This section describes the data on the local GI market about opinion of using GI, demand and supply,

cooperation & competition, policies, data standards, ICT infrastructure, and effects of “Digital Xi’an”

3.5.1. Opinion of using GI

From Table 3-6, it is noticed that the majority of the GI experts agree that the foundation GI data

should be given access by payment, when "Digital Xi’an" is completed. They give some reasons for

this:

1) If the access to the foundation GI data is restricted, both private and public organizations will be

affected. For private ones, they will produce the foundation GI data again since the access to digital

data is denied, even after knowing such data exists. For public ones, they will be not happy that high-

resolution satellite data are masked and then supplied. 2) Data from different sources are in different

form, name system and organized way, so it is difficult to integration and interoperation. 3) New

business opportunities will be inspired now that technology and the commercial value have driven the

people to use the foundation data for making profits.

selection Yes No

percentage 87 % 13 %

Table 3-6 Opinion on access to foundation GI data

All interviewees think the LSDI data standards (including metadata standards) are essential to

promote the GI market. They give some reasons for this:

� If data collected by different organizations use different geographic bases and standards, they will be incompatible and solving cross-jurisdictional problems is often unavailable.

� Metadata helps organize and maintain an organization’s investment in data and provides information about an organization’s data holdings in catalogue form.

� Coordinated metadata development avoids duplication of effort by ensuring the organization is aware of the existence of data sets.

� Users can locate all available geospatial and associated data relevant to an area of interest. � Collection of metadata builds upon and enhances the data management procedures of the

geospatial community. � Reporting of descriptive metadata promotes the availability of geospatial data beyond the

traditional geospatial community. � Data providers are able to advertise and promote the availability of their data and potentially link

to on line services (e.g. text reports, images, web mapping and ecommerce), so improve data sharing.

All interviewees think data sharing is one of objectives to promote the GI market. They give some

reasons for this:

� Data sharing provides for compatibility across jurisdictions, organizations and borders that promote data access and use.

� Data sharing avoids duplication of data collection and storage and waste on resources. � Data sharing improves one organization developing in harmony with others and consequently able

to reap the benefits of working together.


29

Figure 3-8 shows that the first, second and third highest challenges for boosting GI market are

incompatibility of database formats (resulting from incomplete standards), unified data standards

development and different data exchangeable standards. The forth highest ones are unified metadata

development, pricing policy and the incomplete data. The fifth highest ones is copy right. The left

ones, on-line services, limited bandwidth, budget /funding, access right and constructing digital

database are considered as small challenging factors. These results are based on the number of

respondents: the more respondents point out the factor, the more challenging it is for constructing

LSDI.

1 Unified metadata development; 2 On-line Services; 3 Copyright; 4 Pricing Policy; 5 Access right;

6 Limited bandwidth of Network; 7 Budget /Funding; 8 Constructing digital database; 9 Incomplete

data; 10 Different data exchangeable standards; 11 Incompatibility of database formats; 12 Unified

data standards development.

Figure 3-8 Challenging factors for boosting GI market

The interviewees give some suggestions to promote the GI market.

� Cheap and user friendly interfaces to view

� Data sharing and access over web

� Adoption of Web based Open Standards

� Relax map/digital data exchange policy for civilian use

� Increase network band width

� Providing the information on website with metadata

� Involve the end user at the line of complementation

� Raise the awareness of GI and its use through conference, workshop and training,

advertisements in all media, and popularization of the advantages of GI.

3.5.2. Supply and demand

In Xi’an, the chain of supply and demand is shown in Figure 3-9.

0

1

2

3

4

5

6

7

8 Numbers of

respondents

1 2 3 4 5 6 7 8 9 10 11 12

Challenging factors for boosting GI market


30

Figure 3-9 Chain of supply and demand

The major provider is the SBSM who keeps the Geo-foundation data. Value-adding users generally

are private company. End users usually are different government agencies who keep most thematic

data. There are three ways for a supplier to sell products to an end user depending on who adds value:

� A Supplier sells data to an end user who themselves adds values for his purpose.

� A Supplier adds values and then sells final products to an end user.

� A Supplier sells data to a value-adding user who adds values to produce final products and then

resells them to an end user.

3.5.3. Cooperation & Competition

The SBSM has only two ways for cooperation, developing metadata standard for local SDI, and doing

projects together by contracting. What is more, the coordination does not include all organizations: it

focuses on public organizations. Although governments emphasize coordination of the organizations,

there are no laws to enforce it.

In the value-adding market new competitors, especially private companies, have been emerging.

Compared with the SBSM, their advantages and disadvantages are:

Advantages: � Having flexible mechanism to deal with sudden changes in market

� Easily adopt advancing management tools resulting from their small number of staff

� Generalizing competition and market incentives among the staff

� Owning excellent reward system to attract GI specialists

� Daring to invest to introduce new technology and methods

Disadvantages: � Insufficient data

� In lack of stable public funding

� Not in exemption from taxation

3.5.4. Policies

There is the access right in the GI market. It is effective in the market. For one thing, it clearly defines

restricted elements of confidential data, which include scale of the maps, information on vital areas /

Resell Sell

Sell data

Add value then sell

Suppliers Foundation

data

End users

Value-adding

users

Thematic

data


31

vital points, latitude and longitude, and contours or heights with respect to the mean sea level. For

another thing, it specifies clearly the difference access right to open and confidential data. The former

can be got by any entities through payment, while the latter is only used for meeting the demand

approved by the concerned governments. Therefore, private individuals and organizations/commercial

firms can obtain confidential data if they obey to the related rules.

There is the copy right policy in the GI market, but it is not fully effective in the GI market. Illegal

copying of soft products prevails in the country at present because some inaccurate items exist in the

policy and the defined illegal copying behaviours could not include all conditions.

There are the regulations to protect fair competition in the GI market. It is effective in the GI market,

because: a. the public and private organizations have the equal right to bid for the projects; b. since

the foundation data and thematic data is considered as common property, there is a right of access

independent of the commercial or non-commercial status of the person or body seeking access; c.

providing policy of a level playing field protects fair competitive environment. In light of this police,

if the SBSM uses the foundation data for adding value, it must be charged the same price as other

competitors. Of cause the SBSM, as a monopolist, will not do so out of its own volition. Therefore,

the independent regulator oversees that this policy is being adhered to.

There is not a formal pricing policy and a transparent accounting system for pricing the data in the GI

market. Every organization prices its products by its own policy and assessment.

3.5.5. Data standards

A unified data standard (including metadata standards) is unavailable; organizations develop their

own data exchangeable format standards; organizations are in progress to develop database standards

respectively solve data management problems within organizations, without paying attention to

database schema in other organizations;

3.5.6. ICT infrastructure

The proportion of organizations in Xi’an that are connected to internet is 78%; the proportion of the

public who are connected to internet is 67%; the proportion of GI providers whose portal on the

internet is accessible is 100% (Pengde 2006). So, most of organizations and individuals have been

connected to the internet and all GI provider organizations have had their own portal on the internet.

But, the clearinghouse service is not available.

3.5.7. Effects of “Digital Xi’an”

“Digital Xi’an” is built on the basis of Local SDI for collecting, updating and integrating data on

various aspects about the city, such as transport, resources, population distribution, weather condition,

address and block names, disaster and so on, and presenting these data in digital form. Its purpose is

to provide an information sharing platform for serving the public, government and communities.

Launching of “Digital Xi’an” is having some effects on the GI market:

a. facilitate access to the foundation data, which is used for public service, at affordable price.

b. improve data sharing by unifying data and metadata standards.

c. encourage cooperation among GI organizations


32

d. drive GI organizations to move from automation to informatisation.

e. raise awareness of GI and its use.

f. promote transparency of access rules and pricing

g. generalize technology for interoperating data

e. increase public expenditure on the information infrastructure.

3.6. Overview of approach

• Reliability of answers

It was clear from the beginning that it would be impossible to include all the workers and managers in

SPGC of the SBSM since they were very busy. But, the percentage of respondents has already

accounted for about one fifth. What is more, the respondents all have work experience of more than 5

years in this organization. Besides, they answered the questions separately (they were not discussing

together). So, the statistic data and opinion of them on the budget status of the SBSM are reliable. For

scanning the local GI market environment, all the respondents are key persons within the GI

organization or professors in GI societies. So, they are conversant and knowledgeable about the issues

raised. Because of these reasons, the collected answers are considered to be reliable.

• Completeness of answers

To understand the budget status of the SBSM, respondents were selected from all the sections of the

SPGC, which is the main department of the SBSM and responsible for storing and maintaining

foundation geo-data of Shaanxi province, constructing geo-database, data dissemination, developing

standards, producing products and providing services. Scanning the local GI market environment, the

respondents include all kinds of GI provider organizations, that is the SBSM, other public

organizations, private organizations and universities. So, the collected data are fairly complete.

• Accuracy of answers

The data collected are considered accurate because they compare well with other reports in the book,

namely “Main Task and Projects in development of SDI in Shaanxi Province”.


A five week fieldwork was conducted in Xi’an city of China to collect data on the budget status of the

SBSM and the local GI market. Its aim was to test the research questions in chapter1. To this end,

questionnaire and interview have been used. The data gave a clear picture of the SBSM, in terms of

primary characteristics, funding, human resources, GI technology facilities, production & services and

customer related. Simultaneously, they described the local GI market about opinion of using GI,

demand and supply, cooperation & competition, policies, data standards, ICT infrastructure, and

effects of “Digital Xi’an”. In general, the data is reliable, complete and accurate, and is sufficient to

the research and will be used in the SWOT analysis in the following chapter.


33

4. Developing market-oriented strategies by SWOT Analysis

4.1. Introduction

In this chapter, a SWOT analysis is used to develop market-oriented strategies based on the

conceptual knowledge of the indicators for SWOT in Section 2.6 and the factors for market and non-

market failure in Section 2.4. The approach is shown in Figure 4-1.

Figure 4-1 The approach for developing strategies

The structure of this chapter is: Section 4.1 gives the introduction of this chapter; Section 4.2 finds

out opportunities and threats of the market environmental influencing the organization; Section 4.3

ascertains its strengths and weaknesses by through examining the findings on the budget status of the

SBSM; Section 4.4 develops market-oriented strategies by SWOT analysis; Section 4.5 selects

qualitative criteria based on general and specially used criteria and the SBSM’s vision; Section 4.6

tests the effects of the proposed strategies in these selected criteria; Section 4.7 is concluding remarks.

4.2. Analysis of local GI market

Considering the indicators for opportunities and threats in Section 2.6 as criteria, the fieldwork data

on local GI market in Section 3.5 are analyzed for ascertaining opportunities and threats of the

environmental influencing the SBSM.

4.2.1. Opportunities

• Commercialization of foundation data

Fieldwork data

Strengths

Budget status of

SBSM

Weaknesses

Opportunities

Current status of

Local GI market Threats

Strategies Indicators

for SWOT

Factors for

market,non-

market failure


34

From the results of the interviews, both private and public organizations have the intention of

commercialization of foundation data, since they want to buy these data to add value. What is more,

under the policies on privatization, the Central Government permits the SBSM to give the broadest

access to the foundation data to reduce the total cost of society. The trend of commercializing

foundation data will increase the demands of foundation data held by the SBSM. As a result, it could

drive the SBSM to focus on customer and increase its market share. Therefore it is an opportunity for

the SBSM.

• Efficient access right

There is an efficient access right in GI market since it supplies a detail and clear regulations on

restrictions of accessing and using GI data. Therefore private and public organizations firms can both

have right to purchase foundation data they require if they obey to the related rules. This could

facilitate data access and distribution. Hence, the efficient access right is an opportunity for the

SBSM.

• Availability of enabling Geo-ICT

Some of the key technologies potentially useful in data access and delivery are now available, such as

Scalable Vector Graphic (SVG) and Extensible Mark-up Language (XML) able to display quality

vector and raster data with reduced image size and Geographical Mark-up Language (GML) for the

modelling, transport and storage of GI; customer-oriented workflow management systems (WFMS).

These technologies have the potential of facilitating adoption of customer-oriented technology and

data access and distribution. So availability of enabling Geo-ICT is an opportunity for the SBSM.

• Launching of “Digital Xi’an”

“Digital Xi’an”, built on the basis of Local SDI for collecting, updating and integrating data on

various aspects about the city, has been a prioritized activity for the government for installing the

required policies, legal framework, standards, manpower and technologies in support of the access to

and sharing geo-information to facilitate governance and growth of related market. So it could raise

awareness of GI and the platform of “Digital Xi’an” could facilitate data access and distribution. Thus

it is an opportunity for the SBSM.

4.2.2. Threats

• Weak cooperation with other organizations

Horizontally, cooperation only focuses on public organizations, lack of public-private cooperation;

vertically, coordination ways are very simple, only by developing metadata standard for local SDI or

doing projects together through contracting. Moreover, there are no legal rules for guaranteeing the

cooperation. Under this condition, it is difficult for the SBSM to work together with other

organizations to develop information policy, share resources and transfer data between databases. So

this could increase the cost of products and influence the product quality. It is therefore a threat for

the SBSM.

• Competition from other organizations

The public and private organizations have the equal right to bid for the projects. Moreover, in the light

of the policy of a level playing field, if the SBSM use the foundation data for adding value, it has to

be charged the same price as other competitors and the independent regulator oversees that this policy

is being adhered to. Therefore, other GI providers have a fair right to compete with the SBSM in

value-adding market. This could decrease its market share. So it is a threat for the SBSM.

• High illegal copying practice


35

At present, illegal copying of soft products prevails in the country. The GI data cannot be protected

against retrieval and secondary use by others freely. Without this protection, the building of geospatial

data bases is a risky business, since the necessary investments can easily turn into losses. This can

cause that some competitors use the data freely and price their products at a much lower level than the

SBSM. Consequently, high illegal copying practice could decrease the SBSM’s market share. So it is

a threat for the SBSM.

• Potential of deregulation in pricing activities

In short of a formal pricing policy, organizations price their products by different policies and

assessment system. Accordingly, there is not a transparent accounting system for pricing the data in

GI market. Thus this causes unfair price competition and some competitors may price their products at

a much lower level than the SBSM. This could decrease the SBSM’s market share. So it is a threat for

the SBSM.

• Lack of a common geospatial data standard

Organizations have their own metadata standards, exchangeable format standard and database

standard. They are always different. So, it is difficult for the SBSM to access, use and integrate data

of other organizations according to customer’s requirement. This could restrict data access and

distribution and lead delay in delivery resulting from spending much time on integrating data.

Therefore, lack of a common Geospatial data standard is a threat for the SBSM.

4.3. Assessment of the budget status of the SBSM

Considering the indicators for strengths and weaknesses in Section 2.6 as criteria, the fieldwork data

on budget status of the SBSM in Section 3.4 are analyzed to ascertaining strengths and weaknesses of

the SBSM

4.3.1. Strengths

• Capacity available

The SBSM has a large pool of skilled and committed staff and is well equipped. Every year it adopts

new staff and ICT and selects training programs for them, which is used to improve the qualities of

staff. Potential of the human resources could be utilized in re-organizing the data production

workflow in support of the customer needs. So it increases production efficiency and improves the

quality of products. It is therefore a strength for the SBSM.

• Familiarity to GI users

Having the longest history in providing GI data and monopoly of the foundation GI data, its name and

products are familiar to GI users. The government, which has cooperated with the SBSM for many

years, prefers to let it remain providing GI products and services. In view of a citywide operation and

distribution network, the SBSM has earner a brand name amongst the user community of geo-spatial

data. So, it attracts customer’s attention. It is therefore a strength for the SBSM.

• Having a large quantity of data in digital form

The SBSM has a large quantity of data in digital form. Digital GI data can reduce the heavy costs of

storing and change the long time-scales of mapping projects that often extended over several decades.

So it increases production efficiency and decreases cost of products. Moreover, most of customers

have acquired GIS facilities and the corresponding knowledge -how to analyze digital data for

decision making. Accordingly, they need digital foundation data for their own GIS activities.


36

Therefore having a large quantity of digital data also attracts customer’s attention. It is therefore a

strength for the SBSM.

• Perceived as providing reliable and accurate data

Reliability and accuracy of data sets of the SBSM have been the hallmark of the organization, because

it works under government approved regulations. The consensus amongst the community of users in

the city is that the quality of the data available with the SBSM is as good as, if not better than, the

international norms. This good image in customer’s mind certainly attracts customer’s attention. It is

therefore a strength for the SBSM.

4.3.2. Weaknesses

• Overlooking changes of customer scope

Based on the aim of a goal-driven (not-profit oriented) organization, the SBSM does not think

appropriately of changes in customer scope and does not use the economic value of GI fully. Hence, it

has no incomplete customer’s database to record customer information and their feedback in detail.

And the staff working on sales, marketing and dealing with customer relations, accounting for only

8.6%, are not enough. This holds back producing diversified products meeting customer needs.

Overlooking changes of customer scope is therefore a weakness for the SBSM.

• Centralized organization way

Its governed way is centralized. So, their hard earned revenue goes to the general treasury and not to

the organization where the money could be used to up date plants and equipment, improve the reward

systems etc. What is more, it is inefficient for different sections to cooperate in the process of

production, due to requiring layers of checking and auditing; communication among sections is little;

the responsibility of project managers are not clear and they often have difficulties in harmonizing the

work of different sections. So, the centralized organization way holds back increasing production

efficiency and decreasing cost of products. It is therefore a weakness for the SBSM.

• Decreasing budgetary support

Due to the intention of the Central Government to reduce government budgets and adopt the principle

of cost recovery, an indication of the decrease in the budgets for the SBSM could be seen in the last

five years (2 %< decreasing percentage <5 % in average year), particularly the expenditure on the

vital budget-related funding used for adopting new technology. So, decreasing budgetary support

holds back increasing production efficiency and improving the quality of products. Therefore, it is a

weakness for the SBSM.

• Adopting new ICT and staff not according to customer demand

The SBSM adopts new ICT and staff and selects training programs according the budget not the

market demand. Consequently, the role of the organizations in identifying based on users need

assessment and negotiating with donors about type of technology to be adopted is low or does not

exist. Therefore adopting new ICT not according to customer demand holds back producing

diversified products conforming to customer needs. Hence it is a weakness for the SBSM.

• Budget-oriented production workflow

Customer demands have been diversified. However, the SBSM’s production workflow is still budget-

oriented not market-oriented, which means most products provided are standardized and estimate cost

in light of producing similar products and budgeted system. Moreover, completely digital environment

and inappropriate processes exist in the production workflow. Thus the budget-oriented production

workflow holds back producing diversified products conforming to customer needs, improving the

quality of products and increasing production efficiency. As a result, it is a weakness for the SBSM.


37

4.4. Strategies by SWOT analysis

Paying attention to the factors for GI market and GI non-market failure specified in Section 2.4.3 can

boost GI market and make it in order, and then, let the SBSM enjoy its competitive advantages, which

drives the SBSM to market-oriented. Market-oriented strategies are hence developed based on the

SWOT analysis and conceptual knowledge of factors for GI market failure and GI non-market failure

in Section 2.4.3., shown in Table 4-1.

Strengths • Capacity available • Familiarity to GI users • Having a large quantity of data

in digital form • Perceived as providing reliable

and accurate data

Weaknesses • Overlooking changes of

customer scope • Centralized organization way • Decreasing budgetary support • Adopting new ICT&staff not

according to customer demand • Budget-oriented production

workflow

Opportunities • Commercialization of

foundation data • Efficient access right • Availability of enabling Geo-

ICT • Launching of “Digital Xi’an”

SO strategies • Promote advertisement • Exploit the potential of skilled

and committed staff • Enlarge market sharing • Use “Digital Xi’an” platform to

distribute GI data over the Internet

WO strategies • Diversify products for adapting

to demand changes • Adapt managerial responsibility • Simplify access procedure for

attracting more customers • Build market-oriented

production workflow

Threats • Weak cooperation with other

organizations • Competition from other

organizations • High illegal copying practice • Potential of deregulation in

pricing activities • Lack of a common geospatial

data standard

ST strategies • Advertise success business • Improve data sharing network

by collaborative efforts of organizations

• Effectively pursue behaviours of copyright violation

• Regulate pricing activities • operate data / metadata servers

with available standards

WT strategies • set up organization wide IT

network to facilitate coordination and communication

• Provide customer-friendly interfaces

Table 4-1 SWOT analysis and strategies

SO strategies:

• Promote advertisement

In order to meet the need of foundation data commercialization and make GI communities more active

in discovering the economic potential of GI and being willing to buy foundation data for making

profits, it is desirable for the SBSM to invest in aggressive advertisement and promoting market

facilities. Increased scope for marketing is potentially supportive of cost recovery strategy being

pursued by the governments of China recently.

• Exploit the potential of skilled and committed staff

Availability of committed staff is one of the biggest assets of the organization and should be exploited

in competing with the products being provided by other agencies. A sound market-oriented strategy

based on effective utilization of the emerging Geo-ICT by introducing specialists should be adopted to

counter competition and maximize returns on investment by the SBSM.

• Enlarge market sharing


38

Many policies have been enforced to protect fair completion, such as access right and level playing

field policy. Consequently, the GI market is in order, and it provides a good chance for the SBSM to

make profits.

• Use “Digital Xi’an” platform to distribute GI data over the Internet

Use “Digital Xi’an” platform to distribute a large quantity of digital data, perceived as reliable and

accurate, over the Internet for improving the response time in foundation GI data accessing.

WO strategies

• Diversify products for adapting to demand changes

Market-oriented strategies require keeping eyes on the changes of customer scope. Since customer

scope has expanded, and the nature of the data / products used by the civilian users including the

private commercial houses is different from that of the government, the diversification effort should

be pursued based on a sound assessment of the civilian user need.

• Adapt managerial responsibility

In order to remove the centralized organization way, there is a need of the introduce flexibility in

decision making, empowerment of line managers to take responsibility for and be accountable for

their decisions and make private laws. This reform is called adapting managerial responsibility and

authority, which is realized by risk management, Hands-on professional management, explicit

standards and measures of performance. This adaptation certainly includes adopting new ICT and

staff according to market needs.

• Simplify access procedure for attracting more customers

Procedure for requesting the SBSM data sets should be further simplified with the deployment of

appropriate technologies. In particular, accessibility to restricted data should be simplified to facilitate

access of the Government Agencies.

• Build market-oriented production workflow

The market-oriented production workflow is needed to replace the budget-oriented one in the SBSM.

Following the diversification of products / services based on the need of the customer, the market-

oriented production workflow could reduce the delay in responding time.

ST strategies

• Advertise success business

In order to counter the threat of unawareness of GI’s economic value amongst the users, there is a

need to advertise success business stories about the usefulness of reliability and accuracy of data sets

of the SBSM.

• Improve data sharing network by collaborative efforts of organizations

In view of the increasing number of GI providers and users due to the rapid economic development

and the on-going reform process, the SBSM should work out partnership arrangement for data sharing

with public and private agencies. Moreover, launching of “Digital Xi’an” can contribute to improving

data sharing network.

• Effectively pursue behaviours of copyright violation

For better return of investment on Geo-ICT, behaviours on violation of the Copyright Act should be

effectively pursued. And the Copyright Act should be updated in time.

• Regulate pricing activities


39

The pricing of data is strongly associated with the issues such as appropriate price, the right of

individuals to get open access to data, and cost recovery polices. Without the appropriate data pricing

mechanism, the investment in production is not able to be insured. So, organizations that are

promoting business according to customer need require a formal pricing method for their products

• Operate data / metadata servers with available standards

In order to facilitate access, exploration; and discovery of geo-spatial data, metadata and data servers

should be operated using the available ISO TC 211 standards.

WT strategies

• Set up an organization wide IT network to facilitate coordination and communication

With the circle directorates getting equipped with hardware and software, install an organization-wide

IT network to facilitate sharing of data and better coordination of production process.

• Provide customer-friendly interfaces

Considering developing market-oriented strategies for the SBSM and taking note of the growing

customer market demand in the prevailing scenario, data distribution needs of the user community

require to be captured and the related approach in the SBSM adapted in the light of those needs. This

requires constant and frequent interaction with the customers for the assessment of their needs and

customer-friendly interfaces is a good way for this.

By integrating some similar strategies, nine strategies are proposed:

1) Improve data sharing network by collaborative efforts of organizations 2) Build a market-oriented production workflow 3) Use “Digital Xi’an” platform to distribute GI data over the Internet 4) Provide customer-friendly interfaces 5) Operate data / metadata servers with available standards 6) Promote advertisement 7) Effectively pursue behaviours of copyright violation 8) Regulate pricing activities 9) Adapt managerial responsibility

4.5. Selecting qualitative criteria

Before the proposed strategies are put into practice, it is necessary to evaluate their effects. Since the

statistics of performance could not be retained, their effects will be evaluated by qualitative criteria in

this section. Qualitative criteria are selected based on general qualitative criteria, criteria used in

special practice and the SBSM’s missions.

4.5.1. General qualitative criteria

Organizations in any society take time to evolve and develop, but they must develop in ways that

consolidate their strengths. Organizations face internal and external crises and no organizations are

protected from becoming out of date, irrelevant, or subject to closure. To survive, your organization

must adapt to changing contexts and capacities and keep its mission, goals, programs, and activities

agreeable to its key stakeholders and constituents. So, performance assessment by qualitative criteria

is needed. Gupta (2001) points out some general qualitative criteria presented in Table 4-2.


40

Qualitative criteria

• Customer satisfaction • Changes in organizational innovation and adaptation (change according to needs as quickly as possible) • Timeliness of service delivery • Changes in partner attitudes • Change in reputation among key stakeholders • Changes in stakeholders’ acceptance of programs and

services

Table 4-2 Qualitative criteria performance assessment

4.5.2. Criteria used in special practice

• Criteria used in Land Information New Zealand (LINZ 2003) Land Information in New Zealand uses quality features for assessing the performance of provision of

access to topographic and hydrographical information and land information. For topographic and

hydrographical information, customer satisfaction based on attributes like fitness-for-purpose,

accessibility, and availability of goods and services and time-efficiency are applied as qualitative

criteria. For land related information, its qualitative criteria are the same as the ones of for

topographic and hydrographic information.

• Criteria used in Natural Resources Canada (NRCan 2003) In the context of data distribution out of its topographic database, Natural Resources Canada uses

criteria like ‘degree of user satisfaction with geo-spatial data information and accessibility’, ‘client

feedback on product quality’, ‘percentage of work delivered per agreed client requirement’, ‘number

of clients directly accessing data’, ‘number of agreements signed for data distribution’, ‘number of

civilian users accessing topographic information in the new internationally adopted format’.

4.5.3. Selection of qualitative criteria

With regarding to the criteria above used in general condition and special practice, some of them have

been emphasized. Firstly, customer satisfaction has been identified as an important indicator for

measuring the performance of an organization. Secondly, timeliness or time-efficiency in service has

been another important indicator. Based on the SBSM’s vision, the strategies could be dynamically

changed according to continuous vigilance of the market orientation, so the capacity of responding to

change should also be highlighted. Hence, for the present work, the qualitative criteria (Table 4-3) in

respect of the market-oriented strategies proposed here for the SBSM are determined on the basis of

the general and specially used criteria and the SBSM’s vision.

• Customer satisfaction: The related aspects are communication and trust. The former means when customers need similar products and services, they may select the SBSM’ product and services. The latter means they must select the SBSM’ product and services on that condition, because they think their products and services are the best in similar ones. It represents whether a strategy may contribute to making customers have confidence in their products and services.

• Timeliness: The related aspects are acute and non-acute. The former means the SBSM can deliver their products and services in an acute way. The latter means SBSM cannot deliver their products and services in an acute way. It indicates whether a strategy may contribute to improving the overall efficiency of the production workflow process.

• Responding to change: The related aspects are flexible and non-flexible. The former means SBSM can modify the strategies according to changes in the market in time. The latter means SBSM cannot modify the strategies according to changes in the market in time. It shows the


41

SBSM’s capacity of flexibility in responding to changes of market. It shows whether a strategy may contribute to the capacity of flexibility for coping with market changes.

Level Criteria

Low level High level

Customer satisfaction communication trust

Timeliness non-acute acute

Responding to change non-flexible flexible

Table 4-3 Qualitative criteria for evaluating strategies

4.6. Evaluating strategies

The following are the outcomes of a qualitative evaluation of the efficacy of the proposed market-

oriented strategies for the SBSM based on the criteria devised for the purpose.

• Improve data sharing network by collaborative efforts of organizations � Customer satisfaction: Involvement is expected to enhance effectiveness in view of an

increased participation of the partners in data or product customization as per the need of the customer. With partnership investments, data sharing network could be geared to identify needs of the customer and tailor-make the network system to meet those needs. And so this can encourage customer to have confidence in the SBSM’s products, and will change their attitude from communication to trust.

� Timeliness: Due to increased reach of the partner network, customer is expected to have an efficient access to data and products, and their receipt. This can hence reduce the time of delivery, and then the SBSM can deliver their products and services in an acute way.

� Responding to change: The partner networks could be tailored to the needs of the customer and Geo-ICT as against the present near-rigid structure of the data distribution network with the help of the authorized map sales agents and a select group of offices of the organization. The SBSM can accordingly modify the market-oriented strategy according to changes in market in time.

• Build a market-oriented production workflow

� Customer satisfaction: market-oriented production workflow could diversify the products and services by checking the customer needs. And so it is certainly to make them satisfied, which can encourage them to put trust on the SBSM’s products.

� Timeliness: market-oriented production workflow needs setting up organization-wide IT network to facilitate coordination and communication, which will reduce the responding time. SBSM thus can respond to customer’s requirements quickly.

� Responding to change: when changes in customer needs happen, market-oriented production workflow can give a quick responding to this. This enforces the flexibility of the SBSM for coping with changes in market.

• Use “Digital Xi’an” platform to distribute GI data over the Internet � Customer satisfaction: Since the customer need digital data for spatial analysis and decision

making, provision of topographic data over the Internet is expected to increase customer satisfaction. As a result, customers can profess their faith in the SBSM’s products and services.

� Timeliness: efficiency increases due to data transmission over computer network with an assumption of reasonably reliable network and high bandwidth communication. The SBSM’s products therefore could be delivered to customers immediately.


42

� Responding to change: With the availability of a well-designed computer-based distribution system, it should be feasible to quickly modify the operational configuration in response to changes in the environment outside the organization, thereby making the strategy flexible enough to respond.

• Provide customer-friendly interfaces � Customer satisfaction: The strategy is likely to positively impact customer satisfaction owing

to the customizability of the interface as per the identified needs of the customer including the data or product specifications. This hence can inspire customers trust on the SBSM’s products.

� Timeliness: simpler interface through single access point is expected to improve efficiency in data access and exploration and unlikely to impact the speed of receipt of requirements. This consequently can contribute to the realization of delivering products in an acute way.

� Responding to change: The portal provides simpler interface which is likely to help the customer define the specifications based on improved parameters and deal with the match between the need and the provision effectively. The strategy therefore is flexible to the changes from outside in view of the use of a web portal that could be linked to the back end spatial database and Internet map servers.

• Operate data / metadata servers with available standards � Customer satisfaction: Improved access to metadata of the data held by the SBSM is likely to

help the customer define the data / product specifications with better precision thereby positively influencing customer satisfaction, and thus inspire customer’s faith.

� Timeliness: knowledge of metadata is likely to influence the efficiency in the data access positively.

� Responding to change: The strategy could be amended (e.g. modularizing access to a select set of metadata) quickly in response to an external requirement in view of its availability on a computer server, thereby indicating adequate flexibility in the system.

• Promote advertisement and marketing

� Customer satisfaction: Investing in aggressive advertisement and promoting market facilities could make the user aware and understand the strengths of the SBSM data better. Hence this can inspire customer enthusiasm in buying the SBSM’s products, and will change their attitude from communication to trust.

� Timeliness: Due to increased advertising and marketing, customer is expected to find data they required conveniently. This can hence reduce the time of delivery, and then the SBSM can deliver their products and services in an acute way.

� Responding to change: Through enlarging marketing activities, the SBSM can therefore quickly trace the need changes and create new products according to these changes in time.

• Effectively pursue behaviours of copyright violation � Customer satisfaction: Effectively pursue non-compliance of the Copyright Act could better

protect return of investment on Geo-ICT. As a result, the SBSM could increase staff salary and build reward system, which will inspire staff to work harder. This will give an opportunity to provide better products and service. Therefore it could encourage customer to have confidence in the SBSM’s products, and will change their attitude from communication to trust.

� Timeliness: this strategy has no direct effect on decreasing delivery time. � Responding to change: this strategy has no direct effect on improving responding ability to

changes in market.

• Regulate pricing activities


43

� Customer satisfaction: Regulate pricing activities could contribute to appropriately pricing and the protection of investment in production. Consequently, the SBSM will provide a reasonable product price to customers. So it is certainly to make them satisfied, which can encourage them to put trust on the SBSM’s products.

� Timeliness: A formal pricing act and regulated pricing activities in market can help the SBSM price their products as soon as possible. This in the end is favourable for the realization of delivering products in an acute way.

� Responding to change: this strategy has no direct effect on improving responding ability to changes in market.

• Adapt managerial responsibility � Customer satisfaction: Adapting managerial responsibility and authority could introduce

flexibility in decision making, empowerment of line managers. This will facilitate cooperation and communication among sections. Accordingly, the SBSM is likely to improve product quality and thus inspire customer’s faith.

� Timeliness: Introduction of new ICT and staff can make earned revenue update plants and equipment. Moreover, decentralized organization can promote the reward systems. Therefore, adapting managerial responsibility can improve the production efficiency, which certainly lets the SBSM respond to customer’s requirements quickly.

� Responding to change: this strategy has no direct effect on improving responding ability to changes in market.

Results of evaluating proposed strategies are shown in Table 4-4. In Table 4.4, “+” means the

strategies have a positive effect on this criterion, i.e. change it from low level to high one; “-”means

the strategies have a negative effect on this criterion, i.e. change it from high level to low one; “0”

means the strategies have no effect on this criterion. The statistics of this table indicate that 100% of

the proposed strategies have a positive effect on customer satisfaction, i.e. encourage customer to

change their attitude from communication to trust; 89% have a positive effect on timeliness, i.e.

contribute to change deliver way from non-acutely to acutely; 67% have a positive effect on

responding to change, i.e. contribute to flexible responding to changes in market instead of non-

flexibly.

strategies Qualitative criteria

Customer satisfaction Timeliness Responding to change

1 + + +

2 + + +

3 + + +

4 + + +

5 + + +

6 + + +

7 + 0 0

8 + + 0

9 + + 0

Table 4-4 Results of evaluating proposed strategies


44


This chapter has analyzed the fieldwork data to develop market-oriented strategies for the SBSM by a

SWOT analysis. Initially, considering conceptual knowledge of the indicators for SWOT in Section

2.6 as criteria, opportunities and threats in the environmental and strengths and weaknesses of the

SBSM have been ascertained. Then market-oriented strategies have been developed based on the

SWOT analysis and conceptual knowledge of the factors for GI market failure and GI non-market

failure specified in Section 2.4.3. Paying attention to these factors for GI market and GI non-market

failure can boost GI market and make it in order, and then, let the SBSM enjoy its competitive

advantages, which drives the SBSM to market-oriented. In the end, the effects of the proposed

strategies have been tested in three qualitative criteria, which have been determined by referring to

general and specially used criteria and the SBSM’s vision. The result of testing is all the proposed

strategies can encourage customer to change their attitude from communication to trust; most of them

can contribute to change deliver way from non-acutely to acutely flexible responding to changes in the

market instead of non-flexibly.


45

5. Modeling and simulation

5.1. Introduction

This chapter selects one of the suggested strategies, “develop a market-oriented production

workflow”, for modelling and simulation. Its aims are to illustrate a way of modelling an alternative

production workflow and a way of testing its feasibility at operational level and predicting its

bottlenecks. According to the meaning of market-oriented illustrated in Section 1.1, a market-oriented

production workflow has to attach importance to what customers want. The focus of customers’

attention is delivery time and price. The former can be assessed by throughout production time and

production efficiency; the latter is related to production cost. So, by modelling and simulation, the

output data on throughout production time, production efficiency and production cost are used as

criteria for comparing performances of current budget-oriented workflow and an alternative one. If the

results show the alternative production workflow, compared with the current one, can decrease the

delivery time and reduce production cost, it will possibly has the feasibility since it is more suitable

for the SBSM who wants to transform from a budget-oriented organization to a market-oriented one.

The structure of this chapter is: Section 5.1 gives the introduction of this chapter; Section 5.2 claries

the modelling tools and phases of modelling; Section 5.3 models the current budget-oriented

production workflow for producing digital products and find process bottlenecks; Section 5.4 models

an alternative production workflow, which introduces improvements for coping with those

bottlenecks; Section 5.5 simulates these two workflows for collecting statistical data about production

throughput time, average percentage of working time and production cost; Section 5.6, based on these

collected data, compares these two workflows in terms of production throughput time, production

efficiency and production cost and finds bottlenecks in the alternative production workflow; Section

5.7 gives concluding remarks.

5.2. Approach

This section introduces workflow, modelling tools (UML and simulation) and the two phases of

modelling used in this research.

5.2.1. Workflow

Workflow is defined as the computerized facilitation or automation of a business process, in whole or

part. Moreover, it is concerned with the automation of procedures where data, information/documents

or tasks are passed between participants according to a defined set of rules to achieve, or contribute

to, an overall business goal (Hollingsworth 1995). Workflow is therefore often associated with

modelling the core business processes of an organization.


46

5.2.2. Tools for modelling workflow

5.2.2.1. UML

Modelling a business process can only be effectively performed when supported by an integrated

methodology (Radwan 2001). A good business process model captures the real business as truthfully

and correctly as possible, focuses on the key processes and structures of the business at an appropriate

level of abstraction, represents a consensus view among the people operating in the business, adapts

easily to change and extensions, and be easy to understand and foster communication among the

different stakeholders of the business (Ericsson 2000). It is composed of modelling concepts, their

representations, computerized tools and methods, pragmatic skills, and guidelines for modelling.

UML is used as an international standard for developing models that represent object-oriented

business processes. UML models the business process using four important diagrams: activity, use

case, sequence and class. Activity Diagram is suitable to model workflows because of the following

reasons: (McLeod 2001)

• They easily give a sense of the flow and dependencies of steps in the business process

• They can show parallel and asynchronous activity easily, as well as synchronization where

required

• They can support the definition of where operations take place organizationally or

geographically through judicious use of the “swim lane” concept

• They easily represent processes that require or generate state changes across multiple domain

objects

Therefore, in this research, Activity Diagrams is only used for depicting dynamic behaviour of the

business process, i.e. the flow of activities in a business.

5.2.2.2. Simulation

Workflow systems are a major tool to support business process reengineering which aims at

reengineering an existing as-is process into a more efficient to-be process. A key to apply a new

workflow system is how to analyze and evaluate the performance of newly designed processes in

advance. Computer simulation is a good solution, since it mimics reality. It is used for developing

method of control, facilities planning, company modelling, obtaining the best use of current facilities,

materials handling, operational planning and examine the logistic change. Its discipline is designing a

model of an actual or theoretical physical system, executing the model on a digital computer, and

analysing the execution output. In this study, the simulation tool, TPS, is used for analysing the

existing process and new one.

5.2.3. Two phases of modelling

In this study, the modelling process is divided into tow phases. The Activity Diagrams of UML are

used in Phase 1 with the aim to illustrate a way of modelling an alternative production workflow; the

Simulation models translated from the Activity Diagrams are used in Phase 2 with the aim to illustrate

a way of testing the feasibility of the alternative at operational level and predicting its bottlenecks.

The processes of these two phases are represented in Figure 5-1. In Phase 1, firstly, an Activity

Diagram is used to represent the activity sequence of the current budget-oriented production

workflow, and then point out its process problems according to the fieldwork data, which holds back


47

saving time and cost-effective. Secondly, some improvements for coping with these problems are

suggested, and an alternative production workflow is modelled by an Activity Diagram based on these

improvements. In Phase 2, firstly, the Activity Diagrams of these two workflows are translated into

simulation models and process time, the number of resources (workers and equipments) and cost in

every activity is considered. After running the simulation models of the current and new production

workflows, statistical data on production throughput time (time from receive a customer’s request to

send the required product to the customer), percentage of working time for every activity, production

cost (total cost for finishing one product) and buffer condition are collecting. These simulation

outputs have two uses: 1) to compare the current budget-oriented production workflow with the

alternative one in terms of production throughput time, production efficiency and production cost for

determining whether the alternative has the feasibility at operational level; 2) to predict bottlenecks in

the alternative and suggest some solutions. These analysis results will be used for developing

guidelines for implementing this alternative production workflow.

5.3. Modelling current budget-oriented production w orkflow with UML

The current budget-oriented production workflow is mostly initiated by an annual budget from Central

Government and prices products based on experience and social interest. Hence, the delivery process

for standard topographic products was found to be satisfactory. However, when the SBSM receive a

customer request which requires diversified and customized products, there is delay of service. What

is more, since price does not reflect the real cost and market condition, it is possible for the SBSM to

get appropriate commercial revenue from GI market. Figure 5-2 indicates production workflow for

nonstandard products customers require.

Figure 5-2 indicates that after receiving a customer request, it is necessary to check the Use Permit for

determining if the customer has right to use the required data. If the Use Permit is legal, the

Administration Section will translate his product request into production specification and estimate

cost in light of producing similar products and budgeted system (shown in Section 3.4.5). Then the

price will be informed to the customer. If he agrees the price, he will sign a contract with

Administration Section and pay money, which will be used for buying needed resources and paying

for staff’s salary.

Under the current production process, it always takes a long time to produce customized products

because of some process problems resulting from budget-oriented and completely digital environment

and inappropriate processes. From fieldwork interview, these problems are:

Implications from budget-oriented:

• There is no specialized person to handle customers’ product request in different described way.

Since it is an annual budget that initiates an instance of a production workflow, there is no specialized

person to handle customer requests in different directions. As a result, it is difficult and takes a long

time to translate the requests into normal product specifications.

• Database is seamless.

The current workflow is primarily used to produce standard digital topographic maps. Therefore the

SBSM has no capability to produce spatial data in a seamless database where topographic information

of a particular area can be extracted on demand.


48

Phase 1 – Activity Diagrams of UML

Phase 2 – Computer simulation

• The price does not reflect the real cost and market need.

The price of the products is determined mainly by producing similar products and budgeted system.

As a result, it is always stable and does not change in light of change in real cost and relationship

between supply and demand. So the SBSM cannot get appropriate commercial revenue from the GI

market.

Figure 5-1 Two phases of modelling

Model an alternative workflow

Indicate problems in current workflow

Model current production workflow

Run two simulation models and collect statistics

Translate Activity Diagram to simulation model

Set input data

Compare two workflows Find bottlenecks in new workflow

Determine the feasibility Suggest possible solutions

Suggest improvements


49

Figure 5-2 Activity Diagram for current production workflow

Implications from completely digital environment and inappropriate processes:

• Manual digitizing takes relatively longer time.

Digitizing is not automated and as the result of that process is still laborious and time consuming.

• Cartographic process has potential of degrading the quality of data.

The existing workflow contains cartographic process which is lack of generalization rules. So it has

potential of degrading the quality of data by applying inappropriate cartographic process.

• Coordination and control of work processes is very poor.

Information exchange uses passing printed sheets. This is very time consuming and prones to

mistakes. An important part of workflow system is automatic coordination and control of work

processes. This is just what the existing process is lack of.

• Delivering data cannot be done online but in person.

When customers are informed of the completion, it is necessary for them to pay for and get the digital

products in person. The process is very boring.


50

Due to these problems, delay of delivery time, decreasing product quality and unreasonable price is

caused when producing a customized product.

5.4. Modeling an alternative production workflow wi th UML

Some improvements to cope with the problems in the current one are suggested. They are:

• Customer requirements initiate an instance of a production workflow.

If the trigger of production workflow is a customer request, the SBSM could create diversity of

products and services to fulfil market needs.

• Appoint specialized persons to handle customers’ product request in different expression.

Specialized persons can quickly translate different customers’ product requests into normal product

specifications and simultaneously reduce the probability of mistakes.

• Introduce Digital Photogrammetric Workstations (DPW)

DPW, which is supported by digital technologies, can automatize digitizing process and direct store of

Photogrammetric data into a topographic database (i.e., without applying smoothing & other

cartographic functionalities). So, it can improve the data quality and accuracy if handled

appropriately. Moreover, as validated by (Lemmens 1999), the mean time per model for data

compiling by manual labour (under same working conditions & manpower) was found to be the same

as by DPW, whereas editing in DPW took less work time (15% less work time) than that of manual

labour. This implies that editing is easier in DPW than when relying on manual labour, as the user can

interact directly with the image used as backdrop in the editing process.

• Increase possibility for seamless data base.

The main objective of the organization is building seamless topographic database out of which other

products including standard topographic maps can be generated.

• Deliver data on line.

The platform of “Digital Xi’an” could facilitate data access and distribution on-line. The SBSM

should seize this opportunity to realize data delivery on-line, which can make the delivery process

timesaving and convenient.

• Price products depending on cost and market need.

For estimating real cost, data preparation report and reproduction report should be submitted to

accounting section for pricing products. And the price is needed to change according to changes in

relationship of supply and demand. What is more, the price list should be available on the website.

Based on these improvements, an alternative production workflow is modelled by an Activity

Diagram, shown Figure 5-3:


51

receive request

check

send rejection letter

Check standard prod. listsign contract

receive money

submit product spec. to PC

get photo

check quality

store data

reproduction

Prepare products

deliver prod.

Reception Section

(RS)

Request Handler

(RH)

Production Centre

(PC)Account Centre

(AC)

illegal

legal

acceptbale

unacceptable

Distribution

Section (DS)

Create prod. specification

standard

product

no standard product

DPW

Archive

Send report to AC Price on cost & market

Send bill to cust.

order DS to deliver

send request

paymoney

Customer

Figure 5-3 Activity Diagram of an alternative production workflow

5.5. Simulating

This section simulates the current and alternative production workflows. The process time, the

number of resources (workers and equipments) and the cost in every activity are considered when

building simulation model. After the simulation running, data are collected for comparing these two

workflows in production throughput time, average percentage of working time and production cost;

data on buffer conditions are collected for identifying bottlenecks in the alternative production

workflow.

5.5.1. Assumption of simulation

In order to evaluate the effects of the considered factor, replacing old equipments by new ones and

changes in activity sequence, and simplify simulation, there are some assumptions:

• It is necessary to offer a certain product request to be finished by the current and new

production workflow for comparing their different performances since process time and cost

have to vary in light of the type and state of product requests. So digitizing a paper map of

Xi’an is used as a case in simulation. The attributes of this map are as follow: scale = 1:


52

10,000; real area = 10, 000 square kilometres; features include geodetic control point,

physiognomy and terrene factors, road, river, village, trail and school. The simulation input

data, process time and cost in every activity, will be estimated according to the workload of

this product request.

• The total number of resources (staff and equipments) in the current workflow is the same as

those in the alternative one. The number of resources in the same activity of the two

workflows is the same.

• All the received Use Permits are legal. It means all the received requests can go through the

production workflow.

• All the digital maps can pass the activity of CheckQuality.

• A resource means a pair of a computer and a worker.

• The cost of an activity is considered not to change when its process time varies in a small

range.

5.5.2. Translate Activity Diagram to simulation mod el

The simulation models of the current budget-oriented production process and the alternative one are

represented in Figure 5-4 and Figure 5-5:

Figure 5-4 Simulation workflow of current budget-oriented production process


53

Figure 5-5 Simulation workflow of the alternative production process

Buffer : a queue waiting for being done in an activity is modelled as a buffer. Therefore there is a

buffer in front of each activity, arranged in a linear fashion. If queues are continuously constructed,

there is a bottleneck in the activity behind it.

EventController: each simulation model requires an evencontroller. It controls the start and stop of a

simulation run, shows the total simulation time of a run, and sets parameters into their original state.

Source: the frequency of request arrivals, called inter-arrival rate of requests, is presented by a source

and an arrival request goes through the whole production workflow. A function is always built to

illustrate the pattern of receiving requests.

Drain: a drain receives the completed requests which have gone through the whole production

workflow. So it offers the number of the completed products in a certain simulation time.

5.5.3. Setting input data

Input data is very important in simulation since all output data are derived from them. In a more

exclusive study, realistic input data have to be collected over a sufficient long special period.

However, the input data used in this research are limited. There are two reasons for this. For one

thing, it was impossible to get field data due to time constrains. For another thing, as this study is only

to generate a first idea about possible difference in the output, the estimated data based on information

in books and on the internet were considered sufficient enough.

5.5.3.1. Setting inter-arrival rate of requests

Since the data is very limited, it is very difficult to predict the frequency of request arrivals. So it is

impossible to build a function to model the arrival pattern. Therefore, in this research, inter-arrival

rate of requests is set as 30 minutes according to reply in interview. It means average time between

two arrivals is set to be 30 minutes.


54

5.5.3.2. Setting process time

Process time plays a significant roll in simulation model and its any variation will affect output. By

going through books and internet, the usual process time for each activity in the current and

alternative production workflow is estimated in Table 5-1and Table 5-2. However, in reality, process

times have a random nature. Therefore prediction from a single simulation outcome is finite and

absolutely wrong. So we cannot make any conclusion from a single simulation run and any conclusion

from a simulation experiment has to be derived from several runs. For it is impossible to determine a

distribution function for process time without data, plus and minus 5 minutes respectively in process

time of every activity are used for representing randomness.

Table 5-1 Process time for current production workflow

Table 5-2 Process time for alternative production workflow

5.5.3.3. Setting the number of resources

The number of resources for every activity in the current budget-oriented workflow is illustrated in

Table 5-4 according to observation in fieldwork. In the alternative one, the same total of resources is

allocated into every activity in light of the corresponding process time, shown in Table 5-3.

Activity Process time

Check Use Permit 10 minutes

Analyze Request 30 minutes

Estimate Cost 20 minutes

Scan & Orientation 1 hous

Manually Digitize 24 hours

Check Quality 5 hours

Cartography 4 hours

Store Data 10 minutes

Reproduce 3 hours

Deliver 1 hours

Activity Process time

Check Use Permit 10 minutes

Create Specification 10 minutes

DPW 22 hours

Check Quality 3 hours

Store Data 10 minutes

Reproduce 3 hours

Price 15 minutes

Prepare Product 20 minutes

Deliver 15 minutes


55

Table 5-3 Resources for alternative workflow

Table 5-4 Resources for current production workflow

5.5.3.4. Setting cost

By going through books and internet, cost for each activity in the current and alternative production

workflow is estimated based on staff salary, the number of resources and process time, presented in

Table 5-5and Table 5-6.

Table 5-5 Cost for the alternative workflow

Table 5-6 Cost for current production workflow

5.5.4. Run and collect output statistics

The simulation models need a certain time to run stably. Hence identification of the steady state has to

be done before starting a simulation experience.

5.5.4.1. Identify steady state

Before the first simulation runs, the system is empty. Therefore at the first stage of simulation, it is

possible that some activities are at random or not fully used and unreasonable fluctuation exists in

some output statistics. Accordingly, the output does not reflect the real world. This variation only

happens at the initial stage, so after a certain period, the simulation runs will arrive at the steady state.

Activity Resources

Check Use Permit 2

Analyze Request 2

Estimate Cost 2

Scan & Orientation 2

Manually Digitize 8

Check Quality 4

Cartography 4

Store Data 1

Reproduce 4

Deliver 2

Total 31

Activity Resources

Check Use Permit 2

Create Specification 2

DPW 10

Check Quality 7

Store Data 1

Reproduce 4

Price 2

Prepare Product 1

Deliver 2

Total 31

Activity Cost (¥)

Check Use Permit 2

Analyze Request 15

Estimate Cost 10

Scan & Orientation 7

Manually Digitize 3840

Check Quality 300

Cartography 240

Store Data 6

Reproduce 120

Deliver 15

Activity Cost (¥)

Check Use Permit 2

Create Specification 3

DPW 2640

Check Quality 180

Store Data 6

Reproduce 120

Price 6

Prepare Product 6

Deliver 7


56

As a result, it is necessary to identify truncation point between unsteady state and steady one before a

simulation starts. Experiment simulations runs once every 50 days up to 600 days. Truncation point is

inspected by observing the working time percentages of three key processes, represented in Figure 5-6

and Figure 5-7. From these two figures, the truncation point of the current production workflow is 700

days and that of the alternative one is 600 days.

Working time % for 3 key activities in current production workflow

0

10

20

30

40

50

60

70

80

90

100

100 200 300 400 500 600 700 800 runing days

Wor

king

%

Manually Digitize

Check Quality

Cartography

Figure 5-6 Working time % for 3 key activities in current production workflow

Working time % for 3 key activities in new production workflow

0

10

20

30

40

50

60

70

80

90

100

100 200 300 400 500 600 700 800 running days

wor

king

%

DPW

Check Quality

Prepare Product

Figure 5-7 Working time % for 3 key activities in alternative production workflow

5.5.4.2. Output data on production throughput time

As explained in Section 5.5.3.2, the process time of every activity varies in reality. So three scenarios

are used to obtain the average production throughput time of the current production workflow: in

Scenario 1, process time of every activity entered is represented in Table 5.1; in Scenario 2, plus 5

minutes is done to every activity time in Table 5-1and the results are used as input; in Scenario 3,


57

minus 5 minutes is done to every activity time in Table 5-1 and the results are used as input. The

output for the current production workflow is represented in Table 5-7. For the alternative production

workflow, process time of every activity entered in Scenario 1 is represented in Table 5-2, Scenario 2

and 3 use the same rules, i.e. plus 5 minutes and minus 5 minutes. The output for the new production

workflow is represented in Table 5-8.

Scenario Production throughput time

(PTT)

1 7.24 hours

2 7.71 hours

3 6.95 hours

Average 7.30 hours

Table 5-7 PTT for current production workflow

Table 5-8 PTT for alternative production workflow

5.5.4.3. Output data on percentage of working time

For an activity, its life time is composed of working time, waiting time, blocked time, failed time and

so on. But only working time is valid and hence only percentage of working time is collected.

Percentage of working time in current production workflow and alternative production workflow is

shown in Table 5-9 and Table 5-10 respectively.

Activity Working % in Scenario 1 Working % in Scenario 2 Working % in Scenario 3

Check Use Permit 3% 5% 2%

Analyze Request 10% 12% 8%

Estimate Cost 7% 9% 6%

Scan & Orientation , 20% 21% 17%

Manually Digitize 100% 100% 100%

Check Quality 29% 30% 26%

Cartography 23% 24% 20%

Store Data 7% 9% 6%

Reproduce 22% 23% 18%

Deliver 20% 21% 17%

Average 24.1% 25.4% 22.0%

Table 5-9 Percentage of working time in current production workflow

Scenario Production throughput time

(PTT)

1 4.56 hours

2 4.87 hours

3 4.31 hours

Average 4.58 hours


58

Activity Working % in Scenario 1 Working % in Scenario 2 Working % in Scenario 3

Check Use Permit 7% 10% 5%

Create Specification 7% 10% 5%

DPW 100% 100% 100%

Check Quality 33% 37% 31%

Store Data 15% 19% 14%

Reproduce 58% 60% 56%

Price 10% 14% 9%

Prepare Product 27% 31% 25%

Deliver 10% 14% 9%

Average 29.7% 32.9% 28.2%

Table 5-10 Percentage of working time in alternative production workflow

According to Table 5-9, for the current production workflow, average percentage of working time =

(24.1% + 25.4% + 22.0%) /3 = 23.8%

According to Table 5-10, for the alternative production workflow, average percentage of working time

= (29.7% + 32.9% + 28.2%) /3 = 30.3%

5.5.4.4. Output data on Production cost

The TPS does not collect data on cost. It is done by the following way. Cost is defined as an attribute

of an activity. When the request passes through the activities, calculation of the total cost is based on

linear plus function, i.e. Production cost = ∑ cost of every activity. The output data is shown in Table

5-11.

Current production workflow Alternative production workflow

Production cost 4555¥ 2978¥

Table 5-11 Production cost for current production workflow and new one

5.6. Analyzing collectied output data

The collected data is analyzed in this section. The first objective is to compare performances of the

current production workflow and the new one in terms of throughout production time, average

percentage of working time and production cost for checking whether the alternative one is more

timesaving and cost effective. The second objective is to identify bottlenecks in the new one and

supply some suggestion for coping with them.

5.6.1. Comparing performances of these two workflow s

For coming market-oriented, an organization must attach importance to what customers want. The

focus of customers’ attention is delivery time and price. The former can be assessed by throughout

production time and production efficiency; the latter is related to production cost. So, throughout

production time, production efficiency and production cost is used as criteria for comparing

performances of current budget-oriented workflow and the alternative one.


59

Throughout production time and production cost can be gained from simulation output in Section

5.5.4.2 and 5.5.4.4 respectively; production efficiency can be represented by average percentage of

working time for all processes, which can also be obtained from outputs of simulation in 5.5.4.3.

Therefore the result of comparing the current budget-oriented production workflow with the

alternative one is shown in Table 5-12.

Performance aspect Current production

workflow

Alternative production

workflow

Throughout production time 7.30 hours 4.58 hours

Average percentage of working time 23.8% 30.3%

Total cost ¥ 4555 ¥ 2978

Table 5-12 Result of comparing current workflow with the alternative one

In light of comparison results, it is clear that, compared with the current budget-oriented production

workflow, this alternative one can reduce throughout production time, increase production efficiency

and cut down production cost. These substantial performance improvements (time savings and cost-

effective) can increase the SBSM’s market share and generate more commercial revenue. Therefore it

could contribute to transformation from budget-oriented to market-oriented.

5.6.2. Identifying bottlenecks in new production wo rkflow

Identifying the bottlenecks in the alternative production workflow is the second objective in this

simulation research and the further suggested solutions can be used to develop guidelines for

implementing the alternative production workflow in the further. In the simulation mode, every

activity has a buffer in front of it, which present a queue needed to be done by this activity. Analyzing

the output data in these simulation experiments, queues were contiguously constructed in front of

DPW activity and Check Quality activity. These two activities are identified as main bottlenecks of

the new production workflow, since queues which were constructed from time to time in other

activities disappear during the run and they are not considered as bottlenecks. Besides that, working

time percentage of DPW activity was 100%. It means this activity was always busy during the runs

and other activities have to wait. This condition can cause delay in the production line, not full use of

resources and reduction of production efficiency of other activities. Some suggestions are put forward

to deal with these two bottlenecks:

• Increasing resources (workers and facilities) in these two activities

• Introducing fast technologies

• Improving the workers’ ability of operating facility and making them familiar with operation skill

• Improving the sequence of activities, such as progressing of two or more activities in parallel


This chapter aims to show a way of modelling an alternative production workflow and a way of

testing the feasibility of the alternative at operational level and predicting its bottlenecks. So, the two

phases are used to addressing these two aims respectively, represented in Figure 5-1.

The outcome of this comparison has indicated that substantial performance improvements (time

savings and cost-effective) could be obtained is this alternative production workflow. These


60

performance improvements are just the focus of customers’ attention and increase the SBSM’s

market. Therefore the alternative production workflow possibly has the feasibility since it is more

suitable for the SBSM who wants to transform from a budget-oriented organization to a market-

oriented one.

Moreover, by analyzing simulation outputs on buffer condition, bottlenecks in the alternative one

have been identified and they are DPW activity and Check Quality activity, because queues in front of

these two activities were contiguously constructed and working time percentage of DPW is 100%.

Simultaneously, some suggestions have been put forward to deal with these two bottlenecks.


61

6. Conclusions & Recommendations

6.1. Introduction

With the objective of developing market-oriented strategies for the SBSM in the context of LSDI, the

research has addressed the research questions in Section 1.4. It started with the construction of a

conceptual framework: a review of the related concepts (market, GI economic characteristics and SDI

roles in GI market) and the present status of the GI market in UK, USA and Canada to identify the

factors for GI market failure and GI non-market failure; comparing characteristics of budget-oriented

organizations with those of market-oriented ones; in light of the characteristics of market-oriented

organizations, indicators of analytical concepts, opportunity, threat, strength and weakness, were

developed. Secondly, a five week fieldwork was conducted in Xi’an city of China to collect data on

the budget status of the SBSM and the local GI market in Xi’an. Thirdly, considering the conceptual

knowledge of the indicators for opportunity, threat, strength, weakness as criteria, data from fieldwork

were analyzed to ascertain opportunities and threats in the environmental and strengths and

weaknesses of the SBSM. Then market-oriented strategies were developed based on the SWOT

analysis and conceptual knowledge of the factors for GI market failure and GI non-market failure.

After that, the effects of the proposed strategies were evaluated by three qualitative criteria. Finally, a

market-oriented production workflow was modelled and simulated with UML to illustrate a way of

modelling an alternative production workflow and a way of testing its feasibility at operational level

and predicting its bottlenecks.

The present chapter discusses the conclusion and recommendations emerging out of the study. Section

6.2 presents the conclusion vis-à-vis the research questions. Recommendations pertaining to

implementation of the outcomes and future work have been discussed in Section 6.3

6.2. Conclusions

The following conclusions emerge out of the study with reference to the research questions:

1) What factors make GI market failure and non-market failure, respectively?

Based on the related concepts (market, GI economic characteristics and SDI roles in GI market) and

an observation of the current status of the GI market in UK, USA and Canada, some factors which can

make GI market failure have been identified: the monopoly of the foundation data production, and

lack of geospatial data standards. Simultaneously, some factors which can make non-market failure

have been found out: applying a level playing field for public-private competition, efficient

government intervention, appropriate data pricing, balance between access right and copyright,

cooperation of GI organizations and availability of ICT infrastructure.

2) What are the characteristics of a budget-oriented organization and a market-oriented one?


62

Literatures have strongly emphasized that a budget-oriented organization and market-oriented one are

different in essence. In general, the former is goal-driven, hierarchical and centralised governance,

funded mainly by government budget and according to a scheme or budget to perform its functions,

design institutional arrangements and organizational forms, introduce new ICT and staff, price

products and even manage processes and accounting systems. Its customer scope focus on

governments and the relationship with him is a provider and a receiver. While the latter is profit

oriented, flexible in governance, realizes decentralization of managerial responsibility and authority

by risk management, Hands-on professional management, explicit standards and measures of

performance, and follows customer needs to arrange production and introduce new ICT and staff. Its

customer can be anybody who is willing to pay, and the relationship with him is a seller and a buyer.

It is crucial for public sectors to be commercialized, which means the transformation from a budget-

oriented organization to a market-oriented one. Commercialization could overcome public sector

inefficiencies, reduce monopoly, minimize budget deficits, relax trade protection, streamline public

expenditure, generate revenue, expand competition, attract foreign investment, improve service

quality, and increase customer satisfaction. What is more, the summarized characteristics of market-

oriented organizations are considered as criteria in developing indicators of analytical concepts used

in the SWOT analysis.

3) What is the budget status of the SBSM?

In the process of reform in public administration initiated over the last decade in China with emphasis

on privatization, implying transformation from budget-oriented to market-oriented, the Central

Government has mandated the SBSM the new missions for being gradually independent of the

government budgets and generating commercial revenue from the GI market. However, data from

fieldwork have indicated that a large quantity of budget-oriented characteristics still survive in the

SBSM. Many respondents think its primary virtue is goal-driven (not-profit oriented); its form of

control is by plan and budgets; its organization is centralized (it means that, in this organization,

strong top-down managerial authority prevails, requiring layers of checking and auditing so as to

reduce the likelihood of large errors.); their hard earned revenue goes to the general treasury and not

to the organization where the money could be used to up date plants and equipment, improve the

reward systems etc; it adopts new ICT and staff by budget; its production workflow is budget-

oriented; it prices products by budgeted system and producing similar products; its main customer is

the government and opinion of their relation is a provider and a receiver.

4) What are characteristics of the local GI market in Xi’an?

Another reason for driving this transformation to the SBSM is changes which have happened in the

local GI market in Xi’an city and the related data were also collected in the fieldwork. For the opinion

of using GI, the related experts agree that the foundation GI data should be given access, free or

charged, when "Digital Xi’an" is completed. The new policies encourage the fair competition among

public sectors, private companies and any entity else. Synchronously, the launching of "Digital Xi’an"

on the basis of LSDI prompts cooperation among GI organizations and data sharing institution,

generalizes technology for interoperating data, and increases public expenditure on the information

infrastructure and awareness of GI. These trends are enlarging the demand of GI products and

services. Of course, some problems against boosting GI market exist, such as incompatibility of data


63

formats (resulting from incomplete standards), lack of common data standards (including metadata),

the incomplete data and ineffective Copy right and the pricing Policy.

5) What are strength, weakness, opportunity and threat faced by the SBSM?

Considering the conceptual knowledge of the indicators for SWOT as criteria, strength, weakness,

opportunity and threat faced by the SBSM have been identified. The budget-oriented characteristics

are always related to the SBSM’s weaknesses in the value-adding GI market since they hold back the

provision of customized, cost effective and timely geo-spatial data and quickly responding to the

changes in GI market. The weaknesses are overlooking changes of customer scope, centralized

organization, decreasing budgetary support, adopting new ICT and staff not according to customer

demand and the budget-oriented production workflow. Although the SBSM has some strengths, i.e.

capacity available, familiarity to GI users, having a large quantity of data in digital form and being

perceived as providing reliable and accurate data, it cannot fully use these strengths without

overcoming those weaknesses.

In the local GI market, some conditions are opportunities for the SBSM: 1) Both private and public

sectors require to buy foundation data for adding value under the policies on privatization of the

SBSM. This trend of commercializing foundation data will increase the demands of foundation data

held by the SBSM and increase its market share. 2) Owing to an efficient access right in the GI

market, private and public organizations can both have right to purchase foundation data they require

if they obey to the related rules. This could facilitate data access and distribution. 3) Some key

technologies in support of customer-oriented service and data transmission and interoperation are now

available. 4) Launching of “Digital Xi’an” can raise awareness of GI, encourage cooperation, promote

transparency of access rules and pricing and its the platform of “Digital Xi’an” could facilitate data

access and distribution. Of course, there are other conditions which are threads for the SBSM: 1)

Because of weak cooperation with other organizations, it is difficult for the SBSM to work together

with other organizations to develop information policy, share resources and transfer data between

databases. 2) Completion in the value-adding market from other GI providers is keen. 3) At present,

illegal copying of soft products prevails in the country. The GI data cannot be protected against

retrieval and secondary use by others freely. Without this protection, the building of geospatial data

bases is a risky business, since the necessary investments can easily turn into losses. 4) In short of a

formal pricing policy, organizations price their products by different policies and assessment system.

Accordingly, there is not a transparent accounting system for pricing the data in GI market and this

causes unfair price competition. 5) Lack of common geospatial data standards, it is difficult for the

SBSM to access, use and integrate data of other organizations according to customer’s requirement.

This could restrict data access and distribution and lead delay in delivery resulting from spending

much time on integrating data.

6) What are the market-oriented strategies for the SBSM?

Based on the results of the SWOT analysis and the factors for GI market failure and GI non-market

failure in the conceptual knowledge, the strategies for the SBSM who is in the period of transforming

from budget-oriented to market-oriented has been developed. By integrating some similar strategies,

there are nine proposed: improve data sharing network by collaborative efforts of organizations; build


64

market-oriented production workflow; use “Digital Xi’an” platform to distribute GI data over the

Internet; provide customer-friendly interfaces; operate data / metadata servers with available

standards; promote advertisement; effectively pursue behaviours of copyright violation; regulate

pricing activities; adapt managerial responsibility. Before putting these strategies into practice, their

effects should be evaluated. Since statistics of performance are now unavailable, three qualitative

criteria, customer satisfaction, timeliness and responding to change, have been selected for assessing

these strategies. The evaluation result has indicated that 100% of the proposed strategies encourage

customer to change their attitude from communication to trust; 89% contribute to change deliver way

from non-acutely to acutely; 67% contribute to flexibly responding to changes in market instead of

non-flexibly.

7) How to model and simulate one of the proposed strategies?

This research has selected one of the suggested strategies, “develop a market-oriented production

workflow”, for modelling and simulating. There are two phases of modelling: the Activity Diagrams

of UML are used in Phase 1 with the aim to illustrate a way of modelling an alternative production

workflow; the simulation models translated from the Activity Diagrams are used in Phase 2 with the

aim to illustrate a way of testing the feasibility of the alternative at operational level and predicting its

bottlenecks. The processes of these two phases are represented in Figure 5-1. Based on the collected

simulation data, the current production workflow is in comparison with the alternative one in terms of

throughout production time, average percentage of working time and production cost. The results

indicated that substantial performance improvements (time savings and cost-effective) can be obtained

in this alternative production workflow. As a result, the alternative production workflow possibly has

the feasibility at operation level, since it can meet the customer requirements in the market. However,

the buffer conditions in simulation show that bottlenecks exist in the alternative production workflow.

They are DPW activity and Check Quality activity, because queues in front of these two activities

were contiguously constructed. Increasing resources, introducing fast technologies, improving the

workers’ ability of operating facility, and improving the sequence of activities have been put forward

to deal with these two bottlenecks.

6.3. Recommendations

However, several other aspects need to be studied before the strategies suggested in this thesis could

be implemented in practice:

• The proposed strategies have evaluated only by qualitative criteria. Therefore they are only

assessed in theory and in lack of data support. Statistics for organizational performance

should be collected for evaluating these strategies by quantitative indicators, such as the time

from receiving a request to delivering products to customers, frequency of system

breakdowns, and percentage availability of the on-line service system within 2 working days

of order, Number of clients directly accessing data and Number of agreements signed for data

distribution.

• The market-oriented strategies are developed only in perspective of strategy level. In order to

implement these strategies, the organization structure should be rebuilt for facilitating

communication and cooperation among different participants in production workflow.


65

• A sound mechanism need be developed and implemented to monitor changes in market and

Geo-ICT developments so as to revise the proposed strategies for improving image in

customers’ mind and increasing market share.

• Since the data is very limited, the frequency of request arrivals is considered as a constant in

the simulation. However, the pattern of receiving requests is varying in reality. So it is

necessary to collected sufficient data for building a function to model the arrival pattern.

• This study focused on the case of Xi’an only. Further research could collect similar data from

other regions, and compare if the results are similar.

• It is recommended that more alternatives should be tested because predictions on different

alternatives are required to find out the best one for putting it into practice.


66

References

Bamps, C. P. B. (2003). "Spatial Data Infrastructures in the United Kingdom." State of play Spring 2003 Chorley (1987). "Handling Geographic Information: Report to the Secretary of State for the Environment of the Committee of Enquiry into the Handling of Geographic Information." Considine, M. (2001). "Enterprising States. The Public Management of Welfare-to-Work." Day, G. (1994). "The capabilities of market-driven organizations." Journal of Marketing 58. De Vries, W. T; Beerens, S. J. J. (2002). "Economic, financial and capacity aspects of national geospatial data infrastructures." Map India 5th annual international conference. Ericsson, H. a. P., M. (2000). "Business Modelling with UML:Business Patterns at Work." FGDC (2000). "Financing the NSDI: National Spatial Data Infrastructure." Urban Logic. Fornefeld, M. P. O., et al. (2000). "The Market for Geospatial Information: Potentials for Employment, Innovation and Value Added." Frank, A. U. (2000). "The Economic Value of Geo Information." Journal for Spatial Information and Decision Making 13(3): 10-12. Groot, R. (2000). "Corporatisation of national mapping agencies : challenge and opportunity." In: the 15th UN Regional Cartographic Conference for Asia and the Pacific : Kuala Lumpur, 10-14 April, 2000. 22 p. Gupta, G. (2001). "Does Market Orientation Matter? A Test of the Relationship between Positional Advantage and Performance." Strategic Management Journal 22(9). Guthrie, J. (1994). "Understanding Australian Federal Public Sector Accounting Developments in their Context." Haque, M. S. (2001). "The diminishing publicness of public service under the current mode of governance." Public administration review 61(1). Hollingsworth (1995). "workflow management coalition." Kenneth, E. F. (1995). "Legal Issues Relating to GIS." Krek, A. A. U. F. (1999). "Optimization of Quality of Geoinformation Products." Lemmens, M. J. P. M. (1999). "Urban mapping with low cost DPWs and Semi analytical plotters." GIM International 13(1): 36-39. LINZ (2003). "Report of Land Information New Zealand for the year ended 30 June 2003." LINZ.


67

Martinez, B. A. F. (2003). "The Transformation of NMA from Government departments to Independent Organizations: An economic overview." Masser, I. (2004). "Governments and Geographic Information." McLaughlin, J. (2000). "Geospatial Data Infrastructure, Concepts, Cases and Good Practice." Oxford University Press. Mohamed, D. A. M. B. (1998). "Case Study of NSDIs in Countries in Transition - Malaysia." NetTel (2004). "Government Intervention and Market Failure, Network for Capacity Building and Knowledge Exchange in ICT policy, Regulation and Applications." NRCan (2003). "Centre for Topographic Information, Natural Resources Canada." NRCan. Oefinger, P. (2002). "Product concept for the opening of a geospatial data market." MICUS Management Consulting GmbH. OS (2004). "OS Annual Report." Ordnance Survey. Oxera (1999). "The Economic Contribution of Ordnance Survey GB." Pengde, L. (2005). "Problems in Industrialization of Geo-information in China." Pengde, L. (2006). "Main Task and Projects in development of SDI in Shaanxi Province." Petch, R. (1999). "GIS, organizations and people: a socio - technical approach." Pinto, B. (1999). "Understanding Interorganizational GIS Activities: A conceptual Framework." URISA 11(1). Radwan, M. M., Onchanga, R. and Morales, J. (2001). "A structural Approach to the Management and Optimisation of Geoinformation Processes." UN/ECE (1996). "Land Administration Guidelines." Von Rimscha, S. (1996). "The geomarketing scene in Germany." GIS Europe 5(12). Wilson, I. (1996). "The Strategic management Response to the challenge of Global change." The world future society.


68

Appendix I: GI provider organizations

Public organization:

• Xi’an Institute Surveying Mapping & Geotechnical Investigation

http://www.fyrx.net

• Xi’an City Budgetning Bureau

http://www.xaghj.gov.cn/

• Shaanxi Forestry department

http:/www.snly.gov.cn

• Institute of Shaanxi Highway Survey and Design

http://www.shdi.gov.cn/

• Xi’an Academe of Coal-mine

http://www.arscmh.com

• Shaanxi Province Geological Survey

http://www.sxsddy.com/

• The First Institute of Railway Survey and Design

http://www.fsdi.com.cn/

Private organization:

• Xi’an Sanshi Software Development Corporation

http://www.3stonesoft.com

• SuperMap company in Beijing

http://www.supermap.com.cn/

University:

• Xi’an University of Science and Technology

http://www.xust.edu.cn/

• Chang’an University

http://www.xahu.edu.cn/

• Northwest University

http://mainpage.nwu.edu.cn


69

Appendix II: Questionnaire for Understanding the SBSM

Questionnaire for Understanding the Budget Status of the SBSM

INTERTATIONAL INSTITUTE FOR GEO-INFORMATION SCIENCE AND EARTH OBSERVATION

Daiqiong Zhang Department: GIM, ICT

E-mail:[email protected]

Phone: 13991983864

Date: Sep 17, 2007

Dear sir/madam,

I am Daiqiong Zhang, a postgraduate in Chang’an University and in pursuit of Master of Science

Degree in Geo-Information Management (GIM) at ITC, the Netherland. The topic of my research

is “Developing market-oriented strategy for Shaanxi Bureau of Surveying and Mapping in the

context of Local SDI”.

Various reports have emphasized that Geo-Information (GI) has potentially a high economic value

(Von Rimscha 1996). Customer’s requirements are expanding and being diversified at

unprecedented speed; more and more private companies are being involved into GI market; SDI is

shifting from GI generator oriented to market-oriented. In this situation, your organization

(SBSM), as a major GI provider government, is facing the problem of transforming from budget-

oriented to market-oriented. It means change its commitment from data provider to making the

data available and interoperable according to the customers’ need. Once data is available, demand

for GI will multiply as it gives an immense scope for value adding which would in turn trigger the

GI market. To solve this problem, there is a need to develop market-oriented strategies for your

organization in the context of LSDI.In order to do that, I need to understand the budget status of

your organization in terms of general information, funding, GI technology, human resources,

production & services and customer related. So, the questionnaire includes a total of questions on

these aspects. I would be very grateful for your completing this questionnaire and returning it. It is

worth noting that this research aims at purely academic interests and the results will be available

on request.

When you are answering these questions, if you do not understand some words or have some

requests, please contact me by either phone or e-mail. Again, thank you for your cooperation.

Best wishes,

Zhang Daiqiong


70

Respondent information

Name:_________________ Designation &length of service:_________________________

Phone:_________________ E-mail:_____________________________

General 1. What is primary virtue of your organization? ( )

A Goal-driven (not-profit oriented) B Cost-driven (profit oriented)

2. What is form of control in your organization? ( )

A Budgets B Contracts

3. What is Governed way in your organization? ( )

A Centralized B Decentralized

Funding 1. How is your organization funded? ( )

A from government budget

B partly from government budget and partly from selling GI product in market

C from selling GI product in market

D others (please explain )__________________________________________

2. If B is selected, the percentage of the collected capital from government budget is _______ this

year; the percentage of the collected capital from selling GI product in market is _______ this

year.

3. In the last five years, the collected capital from government budget has ( ) yearly.

A increased shapely B increased slowly C decreased shapely D decreased slowly E not changed

4. In the last five years, the collected capital from selling GI product in market ( ) yearly.

A increased shapely B increased slowly C decreased shapely D decreased slowly E not changed

5. Do you allocate a part of budget for new ICT introduction?

� Yes � No

6. How does your organization control the commercial revenue?

A Centrally control according to budget B decentrally control on department levels

GI technology facilities 1. What hardware is available? ( )

A data storing device B Graph workstation C Image scanner

D Output equipment with high precision E Intranet F Internet G GPS

2. Is the internet used for selling products? � Yes � No

3. If so, how many servers are accessible for external users?

____________________________________________________________________________

4. What GIS software is available? ( )


71

A domestic software (e.g. MAPGIS, SuperMap GIS) B ARC/INFO C MapInfo Professional D

TITAN3.0

5. What DBMS software is available? ( )

A Macro Soft Access B Oracle C SQL server D ARCSDE

6. Is image processing software efficient? � Yes � No

7. Your organization adopts new technology by ? ( )

A donation by government in budget B doing propjets in budget C understanding customer need

8 What difficulties appear in adopting and using new technology facilities?

Human resources 1. How many workers are there in your organization?

_____________________________________________________________________________

2. How many workers are working on sales, marketing and dealing with customer relations?

______________________________________________________________________________

_

3. How does your organization adopt new workers?

A according the budget B according market demand

4. Is there training programs in your organization? � Yes � No

5. If so, how does your organization select training programs?

A according the budget B according market demand

Production & service 1. Production workflow of your organization is ( ).

A Budget-oriented B Demand-oriented

2．what problems exist in the production workflow, which holds back providing time saving and

cost effective products?

______________________________________________________________________________

____________________________________________________________________________

3. What is service delivery focus of your organization? ( )

A Targets in budget B Prices of the products

4. Are all the products of your organization available for the public? ( )

A yes B no, only for the government in budget

C others (please explain )______________

5. How does your organization distribute the products? ( )

A in person percentage_____ B by the internet percentage_____ C others (please explain

)______

6. How does your organization price the products? ( )

A By budget B By cost and market value

7. Is the price list available on your organization website? � Yes � No

Customer related


72

1. Who is customer of your organization? Please give the corresponding proportion.

A Government ___% B private organization ___%

C Non-government organization ___% D Academic/research organization ___%

E Broker ___% F Others:____________________

2. How has the number of the customers changed in the last three years? ( )

A increases shapely B increases slowly C decreases shapely D decreases slowly E does not

change

3. Has your organization checked the needs and expectations of your customers?

� Yes � No

4. Does your organization have a complete customer’s database?

� Yes � No

5. If so, what is it used for?

______________________________________________________________________________

______________________________________________________________________________

__

6. What is the relationship of your organization with the custermers? ( )

A Provider and receiver B Buyer and seller

C cooperation in Public Private Partnerships (PPPs) D value-adders

7. Do the customers want your organization to produce new products?

� Yes � No

8. Is it possible to produce new products with in your organization?

� Yes � No

9. If no, is there any initiation to build partnership with private organization?

� Yes � No

10. In what aspects are your customers dissatisfied?

__________________________________________________________________________________

____________________________________________________________________________


73

Appendix III: Questionnaire for GI market (1)

Questionnaire for GI market (1) (In the opinion of SBSM’s authority)




Phone: 13991983864

Date: Sep 17, 2007

Dear sir/madam,







unprecedented speed; more and more private companies are being involved into GI market; SDI is

shifting from GI generator oriented to market-oriented. In this situation, your organization

(SBSM), as a major GI provider government, is facing the problem of transforming from budget-

oriented to market-oriented. It means change its commitment from data provider to making the

data available and interoperable according to the customers’ need. Once data is available, demand

for GI will multiply as it gives an immense scope for value adding which would in turn trigger the

GI market. To solve this problem, there is a need to develop market-oriented strategies for your

organization in the context of LSDI. In order to do that, I need to understand the local GI market

in terms of opinion of using GI, ICT infrastructure, cooperation, competition, data sharing

policies, pricing policies and data standards. So, the questionnaire includes a total of questions on

these aspects. I would be very grateful for your completing this questionnaire and returning it. It is

worth noting that this research aims at purely academic interests and the results will be available

on request.


requests, please contact me by either phone or e-mail. Again, thank you for your cooperation.

Best wishes,

Zhang Daiqiong


74



Phone:_________________ E-mail:_____________________________

Opinion of using GI 1. Do you agree with the free access to the foundation GI data?

� Yes � No

2. If so, what new commercial opportunities could you see?

______________________________________________________________________________

______________________________________________________________________________

__

3. Do you think the data standards and metadata is essential to promote the GI market?

� Yes � No

4. Do you think digital GI data is necessary to promote the GI market?

� Yes � No

5. Do you think data sharing is important to promote the GI market? Why?

______________________________________________________________________________

______________________________________________________________________________

__

6. What strategy do you advise to promote the GI market?

______________________________________________________________________________

______________________________________________________________________________

__

ICT infrastructure 1. The proportion of organizations that are connected to internet is _____________.

2. The proportion of the public who are connected to internet is_______________.

3. The proportion of GI providers whose portal on the internet is accessible is_______________.

4. Is the clearinghouse service available? � Yes � No

Cooperation 1. How do GI providers cooperate with each others?

______________________________________________________________________________

______________________________________________________________________________

__________________

Competition 1. Who are new competitors to the SBSM in GI market?


75

______________________________________________________________________________

______________________________________________________________________________

__________________

2. What advantages do they have, compared with the SBSM?

______________________________________________________________________________

______________________________________________________________________________

__________________

Policies & right 1. Is there the intellectual property policy in GI market? If so, is it effective in GI market? Why?

______________________________________________________________________________

______________________________________________________________________________

__________________

2. Is there the copy right in GI market? If so, is it effective in GI market? Why?

______________________________________________________________________________

______________________________________________________________________________

__________________

3. Is there the access rights in GI market? If so, is it effective in GI market? Why?

______________________________________________________________________________

______________________________________________________________________________

__________________

Data standards 1. What is the status of LSDI Metadata? ( )

A partly available B all available C Being budgetned D Being prepared

Effects of “Digital Xi’an” :

1, do you think the foundation Geo-data which is owned by your organization is becoming more

and more open when "Digital Xi’an" is carried out?

� Yes � No

2. What other effects do you think the "Digital Xi” has on your organization?

______________________________________________________________________________

______________________________________________________________________________

__

3. What is your advice to respond to these effects of "Digital Xi” on your organization?

______________________________________________________________________________

______________________________________________________________________________

__


76

Appendix IV: Questionnaire for GI market (2)

Questionnaire for GI market (2) (In the opinion of GI experts)




Phone: 13991983864

Date: Sep 17, 2007

Dear sir/madam,







unprecedented speed; many companies are being involved into GI market; SDI is shifting from GI

generator oriented to market-oriented. In this situation, the SBSM, as a major GI provider

government, is facing the problem of transforming from budget-oriented to market-oriented. It

means change its commitment from data provider to making the data available and interoperable

according to the customers’ need. To solve this problem, there is a need to develop market-

oriented strategies for your organization in the context of LSDI. In order to do that, I need to

understand the local GI market in terms of opinion of using GI, ICT infrastructure, cooperation,

competition, governance, data sharing policies, pricing policies and data standards. So, the

questionnaire includes a total of questions on these aspects. I would be very grateful for your

completing this questionnaire and returning it. It is worth noting that this research aims at purely

academic interests and the results will be available on request.


requests, please contact me by either phone or e-mail address. Again, thank you for your

cooperation.

Best wishes,

Zhang Daiqiong


77



Phone:_________________ E-mail:_____________________________

Opinion of using GI 1. Do you agree with the free access to the foundation GI data?

� Yes � No

2. If so, what new commercial opportunities could you see?

______________________________________________________________________________

______________________________________________________________________________

__

3. Do you think the data standards and metadata is essential to promote the GI market?

� Yes � No

4. Do you think digital GI data is necessary to promote the GI market?

� Yes � No

5. Do you think data sharing is important to promote the GI market? Why?

______________________________________________________________________________

______________________________________________________________________________

__

6. What strategy do you advise to promote the GI market?

______________________________________________________________________________

______________________________________________________________________________

__

ICT infrastructure 1. The proportion of organizations that are connected to internet is _____________.

2. The proportion of the public who are connected to internet is_______________.

3. The proportion of GI providers whose portal on the internet is accessible is_______________.

4. Is the clearinghouse service available? � Yes � No

Cooperation 1. How do GI providers cooperate with each others?

______________________________________________________________________________

______________________________________________________________________________

__________________

Competition 1. Who are new competitors to the SBSM in GI market?

______________________________________________________________________________

______________________________________________________________________________

__________________

2. What advantages do they have, compared with the SBSM?


78

______________________________________________________________________________

______________________________________________________________________________

__________________

Policies & right 1. Is there the intellectual property policy in GI market? If so, is it effective in GI market? Why?

______________________________________________________________________________

______________________________________________________________________________

__________________

2. Is there the copy right in GI market? If so, is it effective in GI market? Why?

______________________________________________________________________________

______________________________________________________________________________

__________________

3. Is there the access rights in GI market? If so, is it effective in GI market? Why?

______________________________________________________________________________

______________________________________________________________________________

__________________

Data standards 1. What is the status of LSDI Metadata? ( )

A Available B Being prepared C Being planed D Not aware

Effects of “Digital Xi’an” : 1, do you think the foundation Geo-data which is owned by your organization is becoming more

and more open when "Digital Xi’an" is carried out?

� Yes � No

2. What other negative effects do you think the "Digital Xi” has on your organization?

______________________________________________________________________________

______________________________________________________________________________

__

3. What is your advice to decrease the negative effects of "Digital Xi” on your organization?

______________________________________________________________________________

______________________________________________________________________________

__


79

Developing market-oriented strategies for Shaanxi Bureau ... · with private firms in providing data and value-added products to obtain more commercial ... customer satisfaction,

Documents