1. Andrew Coote ConsultingWhere Ltd
11/1/2017
Best Practice in Business Case Preparation: Valuing Social and Economic Benefits of Investment in Geospatial Projects
The Value of Third Dimension in Geospatial Projects: The Challenge of Quantification
The presenter will look at techniques used by economists to quantify the benefits of information and how these might be applied to investment in 3D datasets.
He will examine how benefits already identified in studies can be expressed in financial terms, look at quantification work already undertaken in the US and Australasia
and draw on experience in related disciplines such as environmental science.
Andrew Coote
ConsultingWhere Ltd 1

2. Andrew Coote CEO, ConsultingWhere, UK
ConsultingWhere is an International specialist IT consulting organization focused on location Information, particularly:
SDI Development
Economic analysis (and RoI) studies
Business Strategy

3. Economics can only inform the politics in decision making
Key Messages
Standardisation of processes and scarcity of funding mean geospatial projects need to work harder on justify investment
Quantification is becoming indispensable to securing investment – the attraction of new technology is no longer enough.
We are not alone in seeking solutions to quantification - transport engineers, environmentalists have been here before us and there are important lessons we can learn from them
There is an increasing body of evidence to support “benefits transfer” using studies in other geographies
Storytelling is the essential partner to economic analysis
Economics can only inform the politics in decision making

4. Concepts

5. Business Case – Five Perspectives

6. Projects are about People
Building the Business Case –
Presenter’s Notes
Projects are about People
11/1/2017
“Committed people can make a bad system achieve results, conversely poorly managed or de-motivated people can make the best available system appear useless.”
Before we get too much further – let’s just acknowledge one fundamental truth 6 6

7. Simplified Methodology

8. Stage1: Value Chain Mapping
Data publishers
Aggregators who collect, curate and potentially republish data from multiple data publishers
Enablers who provide services to facilitate the supply or use of data
Developers who create applications for individual consumption
Data users who use data to enhance existing products and services or create new ones
Service users who use the products and services created by data users
From UK Open data

9. Stage 2: Cost-Benefit Analysis
Agree Evaluation Criteria
Identify Impacts
Prioritise Measurement Effort
Quantify Monetary Valuation of Impacts
Create financial model
Sensitivity Analysis

10. Stage 3: Qualitative Benefits
Actor
Process
Impact
Source
Local Authority (own housing stock)
Property Management
i) Desktop (virtual) inspections ii) Better targeted renovations
Dublin CBA Workshop
Solar panel vendors
Installing Solar panels
i) environmental costs reduces ii) new sales
GSI (Geological Survey Ireland)
Sharing between LA and GSI of borehole information
i) GSI build more granular 3D models and supply to LA, others ii) Reduced duplicated capture in local authority
Dublin Value Chain Workshop
Civil Aviation Authority
Obstacle identification
i) reduced costs of acquisition and make records comprehensive
Property Sales Agents
Better visualisation of developments
i) Easier sale ii) Less physical viewings
Knight Frank
Fire Service
Response to emergencies
i) Dispersion of smoke from fires and noxious chemicals in the case of escape. Buildings affect the plume propagation, both horizontally and vertically.
Dublin Fire Service
Software Companies
Standardising of data models
i) Allows companies to develop a software platform for one city but sell across Europe and wider because if the data is created using standards for data content, quality and transfer (interoperability)
City Manager, Helsinki
Local Authority / Environment Agency
More accurate noise mapping
i) Noise propagates in 3D, so the models are more accurate. Ii) EU requirement for cities to create noise maps.
Virtual City SYSTEMS, Berlin
* Presentations can be accessed as below:
Jarmo Suomisto, City Manager, Helsinki
Claus Nagel, VirtualCitySYSTEMS, Berlin

11. Stage 4: Implementation Options
Some criteria to consider in framing options:
Varying scope and scale: often a staged approach where a small initial investment, covering perhaps a pilot area, is more easily justified and can be used to build confidence with decision makers;
Open source v proprietary solutions: - it is tempting to think that open source software is always the best solution but may not be sustainable if the bespoke code cannot be maintained when key staff members leave;
Varying quality targets – investments can involve over-engineering of the solution and inadequate funding for long-term incremental improvement;
Improving existing processes – many solutions do not require automation but better design of existing manual processes, particularly if they are only performed periodically.

12. Stage 5: Benefits realisation
Building the Business Case –
Presenter’s Notes
11/1/2017
Stage 5: Benefits realisation
The business case has a life after the project is approved.
How are the benefits identified going to be proven to have been made?
The case needs to state for each benefit how it will be measured and contingency plans to deal with variations
National Audit Office in UK released a very critical report on the Department for Environment, Food and Rural Affairs (Defra) for not managing benefits realisation on its GIS investment1
Consequence is that next project they propose in this area will be far less likely to be approved!
1. NAO report concluded that Defra:
Estimated that it spent £39.3M on its geospatial (geographic) information strategy and activities since costs are estimates - do not include arm’s length bodies.
Estimated it saved £9.1msince 2000 but many benefits are unquantified or unrecorded. Not a complete picture of benefits arising from investments
Had a consistent geospatial/geographic information strategy in place since 2002 but largely driven by technology solutions and services that the Department can offer its arm’s length bodies.
Could not effectively measure its progress against its strategies because performance measures are not SMART (Specific, Measurable, Achievable, Realistic and Timebound).
It did not set benefit targets or hold its arm’s length bodies responsible for collaborating to deliver the strategy. It has not tracked the full cost of geospatial/geographic information and systems to it or its arm’s length bodies, or systematically measured benefits.
1Source:

13. Stage 6: Reporting and Presentation
11/1/2017
Stage 6: Reporting and Presentation
Framework for a Successful Communication Strategy:
Articulating key priorities and imperatives
Defining and understanding key audiences – customer value propositions
Selecting and building distinctive messages (Storytelling)
Delivering messages through the right channels and at the right time
5) Assessing the impact of the message
6) Continuously Refining the Approach
Acknowledge source
The University Corporation for Atmospheric Research is a consortium of more than 100 member colleges and universities focused on research and training in the atmospheric and related Earth system sciences. Our members set directions and priorities for the National Center for Atmospheric Research, which UCAR manages with sponsorship by the National Science Foundation. Through our community programs, UCAR provides additional innovative services in support of the consortium's education and research goals.
> Print-friendly brochure: About NCAR & UCAR <
The National Center for Atmospheric Research provides research, observing and computing facilities, and a variety of services for the atmospheric and related Earth sciences community.  more below >
The UCAR Community Programs provide innovative services in support of the community's education and research goals.  more below >
Source: Matt Hirschland, Director of Communications, University Corporation for Atmospheric Research, UCAR

14. Building the Business Case – Presenter’s Notes
11/1/2017
Elevator Pitch
Two key elements:
Pain statement – what problem are you trying to solve
Value proposition – how will your venture solve the problem
Four tests:
Succinct
Easy to understand
Greed inducing (efficiency producing)
Irrefutable
Source: 14

15. Geo-Value: A Community of Practice
Group originally formed to help to quantify the business value of INSPIRE
Objective to advance understanding of the benefits of geospatial and environmental information for complex socio-economic decisions.
International representation
Knowledge exchange
Outreach
Workshops
Forthcoming book “Data to Decisions”
Sponsored by NASA, USGS, EuroSDR and JRC
Website
LinkedIn group for knowledge exchange
Free, open membership
Help is at hand

16. Economic value studies only inform the politics
Conclusions
Many industries have successfully established standard, approved methodologies and key metrics for value quantification – we can adopt their approaches
It is a lazy excuse to use the “intangible” excuse
Even non-market benefits can be quantified
Qualitatively-expressed benefits can strengthen the case for investment
Different methods are applicable to different use cases and scales
Information only has value when used to aid business improvement
There is an increasing body of knowledge from our own industry – benefits transfer can be used to support value calculations
Economic value studies must incorporate compelling storytelling to be successful
A Community of Practice exists and welcomes new members
Economic value studies only inform the politics

17. Contact Information:
Mobile:
Skype: andrew.coote Chipperfield, UK
Website: