GIS in Business Presentation American Collegiate Retailing Association March 13, 2003 Colleen M. Schelde ESRI Inc.

GIS in BusinessGIS in BusinessPresentationPresentation

American Collegiate Retailing Association

March 13, 2003

Colleen M. ScheldeESRI Inc.

Presentation AgendaPresentation Agenda

I. Background information on ESRI

II. Definition and examples of a Geographic Information System (GIS)

III. Components of a GIS

IV. How Business benefits from GIS

V. What is ArcView Business Analyst?

VI. How Colleges and Universities can incorporate GIS

Who is ESRI?Who is ESRI? Founded in 1969

Corporate Headquarters in Redlands, CA

World Leader in GIS

300,000+ Client Locations Worldwide

2,750 Full-Time employees

10 US Regional and 20 International Offices

1,200+ Business Partners

Worldwide revenues exceeded $469 million in 2002

Zero Debt and 20% Annual Growth

34th Largest Software Company

Definition of Geographic Information Systems Definition of Geographic Information Systems (GIS)(GIS)

Formal DefinitionA GIS is a collection of computer hardware, software, and

geographic data for capturing, storing, updating, manipulating, and displaying all forms of geographically referenced data.

General DefinitionA GIS is a computerized tool for solving geographic problems.

Spreadsheet

Geographic Analysis of Spreadsheet data

Example of an Analysis in a GISExample of an Analysis in a GIS

Store/Customer Locations (points)

Store Trade Areas (polygons)

Streets and Rivers (lines)

Land Features (lines)

Counties/Zip Codes/Census Tracts (polygons)

Demographic Data and Customer

Data (attribute data)

Components of a GISComponents of a GIS(Points, Lines and Polygons)(Points, Lines and Polygons)

Why Does Geography Matter to Business?Why Does Geography Matter to Business?

• Nearly 80 percent of Business data has some reference to geography – i.e. address or ZIPCode

• Location, location, location…Identifying the best market and the right location can mean the

difference between a winner or a poor performing location

• Prospecting for MORE CUSTOMERS similar to your best customer profile means potential increase in profits

• Competitive market analysis

• Precise target marketing

Geography Matters to BusinessGeography Matters to Business

Identify your best customers Target those customers

Locate the right site

=

Increased ROI

Site ProspectingSite Prospecting

Demographic ReportDemographic Report

Radius Ring AnalysisRadius Ring Analysis

Drive-time polygon analysisDrive-time polygon analysis

Desire Line AnalysisDesire Line Analysis

Customer ProfilingCustomer Profiling

Customer ProspectingCustomer Prospecting

Thematic AnalysisThematic Analysis

Population DensityPopulation Density

Cannibalization AnalysisCannibalization Analysis

Store Portfolio AnalysisStore Portfolio Analysis

Lease Renewal AnalysisLease Renewal Analysis

Special ProjectsSpecial Projects

ArcView Business Analyst Responds to Business Needs

Retail/Real Estate Site Location Analysis- What market presents the best opportunity for success?- Where do I locate my next store?

Analysis of Existing Store Network - Close, Remodel or Re-Locate?- Cannibalization analysis of news stores versus existing stores- When are leases expiring?- Which stores are performing well and which ones are under performing?

Target Marketing & Focused Direct Mail Analysis- What are the demographic characteristics of my best customers?- Where are my best customers located in new markets? - Measure the effectiveness of a Direct Mail campaign – How many responded and how many by ZIP Code?

Demographic Analysis- Trend Analysis – What markets are growing the fastest?

Competitive Analysis- Where are my competitors located in relation to my stores?

ArcView Business Analyst Extension Software Components

ArcView 3.3 – the world’sleading desktop mapping GIS software with many great enhancements.

ArcView Network Analyst – Allows for routing and drive-time analysis.

ArcView StreetMap – Streetmapping and address matchingfor the entire United States.

Centrus Geocoder – An updated and enhanced geocoder for accurate addressstandardization and batch geocoding.

Crystal Decisions’ Crystal Reports 8.5 – Includes Web reports and integration with Microsoft Office.

ArcView Business Analyst Extension Data Components

Business Data – A national database ofmore than 11 million U.S. businesses fromInfo USA, Inc.

Consumer Information – Current-yearnational household consumer file of morethat 105 million households from Hyphos360, Inc.(www.hyphos.com)

Street Information – Nationwide streetDatabase in ArcView StreetMap from Wessex, a division of Geographic DataTechnology, Inc. (GDT).

Demographics – You can choose one of two data providers for nationwide demographic information.

Applied Geographic Solutions, Inc. offers247 variables for current-year and five- and10-year projections.

ESRI Business Information Solutionsoffers 200 variables for current-year and five-year projections, along with current-year estimates for daytime population, net worth, disposable income consumer expenditures and ACORN market segmentationdata at the census tract level.

Shopping Center Data – The National Research Bureau tracks information on over 14,000 shoppingCenters across the United States. ArcView BusinessAnalyst includes shopping centers with 100,000 GLAor greater.

ArcView Business Analyst Wizard Interface

How can you incorporate GIS into your Retailing course curriculum?

• Many Colleges and Universities already have an ESRI Site License

• ESRI offers licenses of ArcView Business Analyst to educational institutions. These licenses are limited to educational (teaching) and research use and do not permit commercial use.

• Single Business Analyst LAB KIT

• Business Analyst Teaching LAB PAK

• License 25 seats in one lab location

• 50 ESRI Virtual Campus Training seats for Introduction to ArcView Business Analyst Course

• IT’S AFFORDABLE!!!