GIS in Business Presentation Retail Information Systems Class October 29, 2003 Colleen M. Schelde ESRI Inc.

GIS in BusinessGIS in BusinessPresentationPresentation

Retail Information Systems Class

October 29, 2003

Colleen M. ScheldeESRI Inc.

Presentation AgendaPresentation Agenda

I. Background information on ESRI and ESRI BIS

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

III. Components of a GIS

IV. How Business benefits from GIS

V. Where and how can GIS fit in a Fortune 1000 Retailer?

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

11 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

Who is ESRI BIS?

• A Division of ESRI

• Acquired by ESRI in January 2002

• Provides specific marketing application products and services including:

- Customer profiling and segmentation - Custom target analysis - Demographic data reports and maps - Direct mail campaign implementation - Media Planning - Merchandise mix analysis - Site evaluation and selection - Target marketing

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 Map AnalysisThematic Map Analysis

Population DensityPopulation Density

Cannibalization AnalysisCannibalization Analysis

Store Portfolio AnalysisStore Portfolio Analysis

Lease Renewal AnalysisLease Renewal Analysis

Special ProjectsSpecial Projects

Where and how can GIS fit in a Where and how can GIS fit in a Fortune 1000 Retailer?Fortune 1000 Retailer?

Supply ChainOperations

IT/IS Department

Real Estate/Store Development

Marketing/Advertising

Merchandising RetailOperations

FacilitiesManagement

• ArcLogistics Route

• ArcGIS

• ArcPad

• RouteMAP IMS

• ArcGIS

• ArcSDE

• ArcReader

• ArcGIS Publisher

• ArcView Business Analyst

• ArcGIS

• ArcIMS

• ArcPad

• ESRI BIS Data

• ESRIBIS.com

• ArcView Business Analyst

• ArcGIS

• ArcIMS

• ArcPad

• ESRI BIS Data• ESRIBIS.com

• ArcView Business Analyst

• ArcGIS

• ArcIMS

• ArcPad

• ESRI BIS Data

• ArcView Business Analyst

• ArcGIS

• ArcIMS

• ArcPad

• ESRI BIS Data

• ArcGIS

• ArcIMS

• ArcSDE

• ArcPad

Supply Chain OperationsSupply Chain Operations

• Locate distribution centers (DC)

• Deliver and route from DC to store locations

• Reduce product cycle time

• Enable just-in-time scheduling

• Minimize overtime

• Schedule and manage your fleet

• Provide dispatcher summary reports

IT/IS DepartmentIT/IS Department

• Web based store locator

• Manage spatial data

• Integrate with corporate databases

• Spatially enable all departments

• Facilitate spatial data sharing and exchange

• Enterprise mapping and analysis

Real Estate/Store DevelopmentReal Estate/Store Development

• Evaluate Sites

• Analyze your competition

• Profile Customers

• Manage Store Portfolio

• Define traffic patterns

• Evaluate market potential

• Analyze trade areas

• Forecast and model sales

Marketing/AdvertisingMarketing/Advertising

• Evaluate advertising effectiveness

• Focus advertising campaigns

• Define targets

• Analyze markets

• Develop targeted promotions and campaigns

• Understand customer spending

MerchandisingMerchandising

• Rank store locations by type and merchandise mix

• Analyze market demographics

• Evaluate, cross sell and up sell opportunities

•Analyze trade area

• Segment customers by lifestyle and product category

• Model store customer databases

Retail OperationsRetail Operations

• District/Zone map changes

• Analyze markets

• Penetrate markets

• Profile customers

• Forecast market potential

• Score and predict consumer buying behavior

• Integrate in-store, catalog, and Internet market analyses

Facilities ManagementFacilities Management

• Map headquarters

• Map departmental areas/ zones

• Map and locate - Restrooms - Emergency Exits - Fire extinguishers - Conference rooms - Public telephones - Stairs - Elevators - Parking - Printers - Copiers