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GIS cruises through business lanes


Applications
GIS is a technology to interpret demographic trends, manage resources and model consumer’s trend. The business of mapping includes the map data, it’s property like demographic and other user specific data. It helps manage spatial data within a relational data base management system. It can support wide scale, multi-user-application, enables larger data sets, unifies business and spatial data and allows server-side processing. Information discovery is related to direct marketing, distribution logistics, merchandise planning and site selection. It can help competitive analysis that in turn will reduce the competitive threat and enable to understand the relationship between competition and their operations in the specific location. It can pin point the most profitable location. Trade Area Analysis can be done with the system to know from where the customers are coming. GIS use in Financial Services basically aims at property management, regulatory compliance, risk management, target marketing and branch location. The distribution Planning will get products from the warehouse to distributors. The analysis of Demography of any region will ensure that you are targeting the right customer base. It helps in network maintenance in insurance, municipal planning, disaster management, emergency services, public safety, census analysis, land use profile and environmental planning, etc. There are several benefits of mapping in business such as optimise customer acquisition through precision marketing programme, maximise customer relation, lower overhead costs, etc.

The involved in retailing must understand the nature and geographic distribution of customer base, thereby providing a fundamental basis for establishing demographic profiles, defining trade areas, predicting demands, developing marketing strategies, and evaluating market penetration and potential. Recently there has occurred a switch in focus to the marketing uses of GIS and their dissemination into more and more departments within the company’s organisational framework. Decision making has moved to a vertical as well as horizontal flow of information, where groups collaborate on planning issues and then transfer their ideas and inferences up a corporate ladder to the company’s final decision makers. GIS as a spatial tool of analysis facilitates the planning processes and ultimately the decision making at the highest corporate levels. GIS is now being used as a strategic resource which can have an impact throughout a given organisation.

GIS can be a tool for strategic planning in marketing organisations. A GIS database query allows a business planner to identify and locate residences with incomes greater than a defined floor, within a specific age range, and distributed around a retail outlet within a given driven time threshold. The locations of these potential customers are then used for direct micro-marketing campaigns which are utilised by mailing materials to those residences which exhibit aggregate characteristics as defined prior to query for those potential consumers. GIS also empowers a planner to better understand the spatial distribution of a given market by locating existing customers’ residences for a given facility. This process can be carried out for a series of outlets after which the relative strength of customer clusters with in each district, a trade area is defined by purchasing behaviours and the series of customers’ residential locations.

Constraints
Data availability is a major hurdle in India. Even if data is available, it is not GIS friendly format. Maps availability, border restriction and their copyright are some of the hurdles faced by the GIS industry. Market research companies do not use maps. In India only a few companies have opted for GIS. This is partly because the software packages are still relatively undeveloped in India. Apart from this, integration of data with existing systems, cost of data maintenance, difficulties in quantifying payback period of business geographics, etc. are other problems.

Another problem is the lack of awareness in academic institutions about the potential use of GIS on business applications. Presently, there is not much integration between and GIS is academic institutions. The Information Technology Departments of these institutes should integrate GIS in their curriculum.

In Australia, according to a research conducted by a consultancy group, less than 1% of Australia’s corporate sector is currently using the GIS technology basically due to high cost of GIS technology. Moreover, the people with right kind of skills is also very costly. Another reason for failure is of GIS in Australia is that it is not being taught as part of any university business course in Australia.

The Business Schools
It is not surprising that top business schools such as Wharton, Havard and Clemson are using business geographics in classrooms, computer labs and research centres. But even though business geographics - the fastest growing applications of GIS technology is taught in some programmes, its overall penetrations into business schools is low, even in ore developed countries of the west.

In congruence with the trends worldwide, the GIS has still to make its pressure felt in Indian business schools. Some initiatives have been taken at the economics, business management institutions such as Indira Gandhi Institute of Development Research (IGIDR), Mumbai, Indian Institute of Economic Growth, Delhi, IIM Ahmedabad and Bangalore and Indian Institute of Rural Management (IIRM), an and for using this technology. However, these initiatives have largely remained confined to using GIS for formulating macro economic policies for sustainable development of a region. These initiatives have not yet transformed themselves in developing GIS based micro-level plans. Some schools such an Amity Business School. Noida, Department of Business Economics, University of Delhi South Campus, New Delhi and Faculty of management Studies have tried to expose the students to this new exciting technology through invited lectures from the industry, project work, etc.

The Probable Scenario
As GIS becomes established in a variety of marketing contexts, the pace of development is largely determined by three considerations
  • Ability to structure and manipulate multiplying sources into useful information.
  • Development of computer software to handle different classes of geographic problems.
  • Prospects for disseminating developments in spatial data handling
Pretty maps may not be the answer to everyone’s nightmare, but it is GIS that consolidates the facts into a more interpretable form. The user has the option of looking at reams of paper output or perhaps, just one map.

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