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

Presentation 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?  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  34 th Largest Software Company

Definition of Geographic Information Systems (GIS) Formal Definition A 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 Definition A GIS is a computerized tool for solving geographic problems.

Spreadsheet Geographic Analysis of Spreadsheet data Example 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 GIS (Points, Lines and Polygons)

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 Business Identify your best customers Target those customers Locate the right site = Increased ROI

Site Prospecting

Demographic Report

Radius Ring Analysis

Drive-time polygon analysis

Desire Line Analysis

Customer Profiling

Customer Prospecting

Thematic Analysis

Population Density

Cannibalization Analysis

Store Portfolio Analysis

Lease Renewal Analysis

Special 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’s leading desktop mapping GIS software with many great enhancements. ArcView Network Analyst – Allows for routing and drive-time analysis. ArcView StreetMap – Street mapping and address matching for the entire United States. Centrus Geocoder – An updated and enhanced geocoder for accurate address standardization 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 of more than 11 million U.S. businesses from Info USA, Inc. Consumer Information – Current-year national household consumer file of more that 105 million households from Hyphos360, Inc. ( Street Information – Nationwide street Database in ArcView StreetMap from Wessex, a division of Geographic Data Technology, Inc. (GDT). Demographics – You can choose one of two data providers for nationwide demographic information. Applied Geographic Solutions, Inc. offers 247 variables for current-year and five- and 10-year projections. ESRI Business Information Solutions offers 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 segmentation data at the census tract level. Shopping Center Data – The National Research Bureau tracks information on over 14,000 shopping Centers across the United States. ArcView Business Analyst includes shopping centers with 100,000 GLA or 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!!!