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Data specification for utility GIS and corresponding cost benefits in the year 2002


Cost of a Future Upgrade
Unlike upgrading the GIS Hardware or Software, upgrading the underlying data will be an expensive proposition because the utilities will also be spending resources towards (1) purchasing a high resolution base map, (2) mapping mostly buried utilities to higher precision and (3) matching the old GIS data with the new geometric data.

While this additional investment will certainly increase the quality of the GIS, the inertia, coupled with not having a pressing need, will lead to delays in such upgrade projects, resulting in opportunity loss.

The Decision Making
The chart on the right hand side shows the cost of two different Geographical Information Systems for an area of 100sqkm, one implemented using "coarse" geometric data and the other implemented using "fine" geometric data.



At the indicated prices, the GIS installed with "Fine" map data has provisions for investing in decimeter GPS, comprehensive attribute data collection, extended custom GIS solutions, mobile GIS (hardware and software) for maintenance crew, etc.

Whereas, it is technically inappropriate to add these additional facilities to "Coarse" map data. Hence, the "Coarse Product" prices indicated in this chart does not provide for any of these facilities.

Cost Benefit Analysis
Let us consider two utility companies, installing a new GIS infrastructure for an extent measuring some 100 Sqkm:
  • The first utility, "Utility C", let us say, is basing their GIS on "Coarse" product.
  • The second utility, "Utility F", let us say, is basing their GIS on "Fine" data product
Let us assume that each of these utilities suffer a cost of finance of 14%.



The "Utility C" will be investing Rs 75 Lk on the new GIS and "Utility F" will be investing Rs 160 Lk.

By restricting the investment level to Rs 75 Lk on a GIS database with "Coarse" product, the "Utility C" will have the advantages of
  • Conserving the scarce financial resources
  • Opportunity to upgrade to "Fine" product at a later date, may be in about four years from now, after the product becomes much cheaper than today.
  • Opportunity to gradually include additional features like GPS, mobile GIS, etc., after these technologies mature and become cheaper than they are today
Whereas by Investing Rs 160 Lk, "Utility F" will get:
  • A high resolution base map with resale value (with a potential to earn the entire investment)

    Initial Investment
    Cost of GIS Facility 160
    Saving in Network -60
    Net Cost 100


    Financials after 2 Year
    Cost carried over 34
    Add 14% cost 5
    Saving in Maint. -80
    Net Cost -41


    Financials after 4 Year
    Cost carried over -127
    Add 14% cost -18
    Saving in Maint. -80
    Net Cost -225
    		 Financials after 1 Year
    Cost carried over 100
    Add 14% cost 14
    Saving in Maint. -80
    Net Cost 34


    Financials after 3 Year
    Cost carried over -41
    Add 14% cost -6
    Saving in Maint. -80
    Net Cost -127


    Financials after 5 Year
    Cost carried over -225
    Add 14% cost -31
    Saving in Maint. -80
    Net Cost -336
  • A set of decimeter GPS and mobile GIS hardware and software so the fault and maintenance works can be fully automated from the day one.
  • Better last mile planning and better cost control of the project execution.
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